{"id":34933,"date":"2017-07-19T15:26:00","date_gmt":"2017-07-19T15:26:00","guid":{"rendered":""},"modified":"2020-09-16T16:24:10","modified_gmt":"2020-09-16T16:24:10","slug":"9933-is-coal-making-a-comeback-in-china","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/9933-is-coal-making-a-comeback-in-china\/","title":{"rendered":"Is coal making a comeback in China?"},"content":{"rendered":"\n

The economic data<\/a> for the first half of 2017 is in and it suggests that China\u2019s efforts to curb coal consumption may have faltered, raising questions over the country\u2019s progress in greening and restructuring its economy.<\/p>\n\n\n\n

According to new figures from the Chinese National Bureau of Statistics, domestic coal production increased by 5% year-on-year. China also remains a net importer<\/a> of coal, meaning it imports more coal from other countries than it exports.<\/p>\n\n\n\n

In the first six months of 2017, China\u2019s economy grew faster than expected at 6.9%<\/a> year-on-year. GDP growth and coal consumption are linked. But it remains unclear whether the resumption of higher GDP growth will end the three-year decline in coal consumption or is just a temporary increase.<\/p>\n\n\n\n

Coal demand is up<\/h2>\n\n\n\n

Steel and power generation have been the main drivers of China\u2019s coal demand, according to Huw Slater, research and projects manager at China Carbon Forum, a non-profit organisation working in the climate and environmental sector. China\u2019s steel production reached a record high<\/a> in June 2017. This is consistent with a surge in demand for coking coal in the first half of the year.<\/p>\n\n\n\n

\u201cChina’s stronger economic growth since early 2016 is driven by sizeable credit stimulus that has mainly benefited construction and ailing heavy industry sectors,\u201d says<\/a> Lauri Myllyvirta, energy analyst at Greenpeace in Beijing.<\/p>\n\n\n\n

Thermal power production rose 7.1% year-on-year between January and June while total electricity demand increased by about 6%. Unfavourable weather conditions limited the supply of hydropower.<\/p>\n\n\n\n

The share of electricity produced by solar and wind power continued to grow significantly. However, their combined output was \u201cnot enough to meet the higher level of growth in power demand, leaving coal power to fill the gap,\u201d says Slater.<\/p>\n\n\n\n