A recent study highlights the various political, economic, and technological challenges that China encounters as it seeks to move away from its primary energy source, coal, while juggling the urgent need to address climate change and maintain energy security.
A recent paper from the University of California San Diego sheds light on the diverse political, economic, and technological hurdles China must overcome to reduce its dependency on coal—the mainstay of its energy sector—while trying to meet the dual demands of mitigating climate change and ensuring energy security.
Even though China has pledged to “phase down” coal usage, it has been approving and building coal power plants at unprecedented levels not seen in the past ten years.
“The focus on energy security has intensified in China—2021 marked the year with the worst power outages in generations, impacting 20 provinces,” stated Michael Davidson, the study’s author and an assistant professor affiliated with both UC San Diego’s Jacobs School of Engineering and School of Global Policy and Strategy. “While China managed to reduce its coal workforce by over 2 million people in the last ten years without significant socio-economic effects, cutting the next 2 million will be considerably more challenging.”
The research provides several policy suggestions, including the enhancement of market reforms, ensuring consistent investment in renewable resources, and establishing adequate support systems for communities, workers, and businesses.
“The future of coal in China hinges on finding a balance among economic growth, energy security, and environmental sustainability,” Davidson remarked. “The insights from this study offer a pathway for policymakers and researchers aiming to navigate this intricate transition.”
Recently published in WIREs, the review paper assesses, compiles, and summarizes earlier research on China’s coal dependency.
It stresses that the transition away from coal in China is intricate, necessitating cooperation among central and local governments, state and private enterprises, as well as international collaborators.
China accounts for over half of the world’s coal consumption and contributes more than 20% of global CO2 emissions from coal usage.
The nation has pledged to achieve carbon neutrality by 2060, which demands a significant reduction in coal’s share of its energy portfolio.
Nonetheless, the research indicates that coal remains firmly entrenched in China, providing substantial employment opportunities and benefiting from reserves of 140 billion tons, which solidifies its role in the nation’s political economy and energy strategy.
“China’s ability to lessen its dependence on coal will significantly affect the trajectory of the country,” Davidson noted.
Coal use not only contributes majorly to global CO2 emissions but is also a critical factor in China’s severe air pollution crisis, which accounts for an estimated 1.1 million fatalities each year, he pointed out.
“It is crucial that workers and communities dependent on traditional coal industries are not forgotten in the shift from fossil fuels to renewable energy sources,” Davidson emphasized. “There are limited successful global examples for the magnitude of China’s shift, but greater international collaboration and shared experiences will be vital as countries globally seek to reduce coal reliance in the upcoming decades.”
