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IEA Launches Coal Market Report 2018-2023 in China

March.15 Coal

Co-sponsored by International Energy Agency (IEA) and China Energy Investment Corporation (China Energy), the launch for Coal Market Report 2018-2023 was successfully held by China Shenhua in Beijing in February 25, 2019. This launch brought together over 200 officials and experts drawn from government, academia and the power industry to discuss national coal policies and hot market topics such as global coal demand, price, and trade.

During his speech, Liu Baohua, Deputy Director General of China's National Energy Administration said Chinese government has persevered in improvement on quality and benefit of development, and has paid high attention to structure optimization, clean and efficient development, as well as technology innovation. It was clearly put forward that a modern coal industrial system of intensivism, safety, efficiency, and pro-environment should be built to fulfill the target that coal industry changes from big to strong. Currently, 70% of coal power units in China has achieved ultra-low emission, indicating that China has built the world’s largest clean coal power supply system, which shall effectively alleviate the contradiction between energy supply and environmental protection, and set an example for the clean utilization of coal worldwide.

In 2015, China put forward intensified actions and measures to combat climate change and set its own target by 2030: Carbon dioxide emissions will peak around 2030 as soon as possible. Carbon dioxide emissions per unit of GDP will drop by 60-65% compared with 2005. A project of consultant and research, Study on Energy Structure Optimization in China under Coal Constraint, was launched by Chinese Academy of Engineering in Beijing in 2016. With the joint efforts of the whole industry, China could be confident to solve the problem of carbon dioxide emissions. Meanwhile, the technical innovation was highly valued. In 2016, China determined 15 major science and technology projects for 2030, one of which is the clean and efficient utilization of coal. As the lead implementer of this project, China Energy will cooperate with all trades and professions to help innovation on coal industry together, making coal a better contribution to mankind.

The released Coal Market Report 2018-2023 pointed out that coal was still the core of global energy system at present, because it was affordable, abundant, and convenient to transport. In many countries, especially in China, South Asia, and Southeast Asia, coal remain has remained as main energy, providing energy security and accessibility to support the development of local economy. The Report predicted that global coal demand will remain stable over the next five years. Coal consumption in Europe and the United States will decline, however, those declined shares would be offset by growth in India and other Asian countries. For the next five years, the contribution to global energy structure by coal may drop from 27% to 25%, and the main alternative energy sources for it are renewable energy and natural gas. Though China is the major participant in global coal market, its economy is in the process of transition currently, leading to a gradual structural decrease of less than 1% per year in coal demand. In the future, the sustainable development of coal depends on carbon capture, utilization and storage.

The participants said that The Report is conducive to a comprehensive understanding of the current situation and future development trend of the international and domestic coal market, especially the clean development of coal and its approaches. It will help China to realize its commitment to peak carbon emissions by 2030, and win the battle to defend the blue of our skies.