China’s coal sector will grow but then shrink

Significance Energy security concerns and regional economic interests are driving the construction of more coal mines and coal-fired power stations, though government mandates will set a cap on this, and coal mines -- mostly in northern and western regions -- remain a major employer. Meanwhile, renewable energy sources are gaining traction. Impacts Utilisation rates of coal plants will decline further, requiring the government to introduce additional financial support. Air pollution will continue to be a problem in many regions of China. Only the largest power-generating companies are likely to survive as utilisation rates decline further. The scale of potential stranded costs will rise as coal plants become less and less economical to run. China will face increasing pressure at climate change meetings.