10 April 2021

The world is kicking its coal habit. China is still hooked


LAST YEAR was a bad one for coal in much of the world. As countries went into lockdown, demand for energy plummeted. With many workers obliged to stay at home, and financing for coal projects proving ever more difficult, the development and construction of coal-fired power plants stalled. There was one bright spot, however. According to a report published this week by Global Energy Monitor, an American NGO, China commissioned 38.4 gigawatts (GW) of coal-power plants in 2020. This boost in global coal-fired capacity means that, although the rest of the world idled 37.8GW of coal plants, total capacity actually increased last year for the first time since 2015.

China’s affinity for coal, the biggest source of greenhouse gases, may be surprising given the country’s recent pledge to cut emissions to net-zero by 2060. There are, however, other mitigating factors. Local government officials, whose performance is often measured against targets for economic growth, have long used infrastructure projects—especially coal plants—to inflate their GDP figures. In 2020, when China was one of the few countries in the world to register any growth, three-quarters of the coal-fired capacity approved for construction was sponsored by local governments and firms. Regulators did not get in their way. China’s National Energy Administration gave several provinces the nod to approve new coal power plants.

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