China continues to build huge coal projects

China continues to build huge coal projects

In 2023, China's energy industry began building nearly 100 gigawatts of new coal-fired power capacity, marking the highest number of new builds in nearly a decade, a report from two clean energy groups revealed on Thursday.

Concern about climate goals

This development raises concerns about the ability of the world's largest carbon dioxide emitter to meet its climate targets. It could also jeopardize China's massive expansion in solar and wind energy, which has progressed much faster in recent years than in the USA and Europe.

Overlay of renewable energies

The report states: “Instead of coal, clean energy will initially be built on an entrenched reliance on fossil fuels.” The assessment was made as part of a biannual review of China's coal projects by the Europe-based Center for Research on Energy and Clean Air and the U.S.-based Global Energy Monitor.

New buildings and restarted projects

According to the report, 94.5 gigawatts of new coal-fired power plant capacity was put under construction in 2024 - more than in any year since 2015. In addition, work was resumed on 3.3 gigawatts of decommissioned projects, according to the report.

Further capacity expansion in the next few years

“A significant number of new power plants will come online in the next 2-3 years, further cementing coal’s role in the energy system,” the report predicts.

Displacement of renewable energies

The fear is that coal power could displace the capacity of solar and wind turbines. According to the report, fossil fuel power generation remained high in the last three months of 2024, while solar and wind power utilization fell sharply.

Increased permits for coal-fired power plants

The new construction activity was a result of the increase in permits for coal-fired power plants in 2022 and 2023, said Qi Qin, China analyst at the Center for Research on Energy and Clean Air.

Calls for a construction stop

“We call on China to exercise restraint in building already approved coal-fired power plants to avoid further overcapacity, reduce emissions and behave in line with its climate commitments,” she said.

China's climate goals

Chinese President Xi Jinping announced two climate goals in 2020: peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. Analysts say China's carbon emissions may have already peaked, and the next challenge is to start reducing them.

Missed deadlines

China was among many countries that missed a UN deadline this week to submit a national plan to cut emissions by 2035. Foreign Ministry spokesman Guo Jiakun said the government was working on a plan and would submit it "in due course this year."

Global coal construction projects

China accounted for 93% of global coal-fired power plant construction starts last year, according to the report from the two clean energy groups. Proposals for new or reactivated coal-fired power projects in China fell to 68.9 gigawatts last year, compared with over 100 gigawatts in the previous two years, suggesting new construction may be declining.

Approved coal power capacity

The amount of new coal power capacity approved in China last year also fell to 66.7 gigawatts after rising sharply in 2022-2023.