China plans to continue the construction of new coal power plants until 2027 in regions where such energy is necessary to meet peak demand or stabilize energy systems. This is stated in government directives on the modernization of coal energy, as reported by Reuters.
This is reported by Business • Media
The recommendations issued by the state planner and energy regulator indicate that new coal power plants should have carbon emissions 10-20% lower compared to the 2024 fleet. Additionally, the directives call for the modernization of some existing facilities to meet these requirements. Recently built and upgraded coal power plants must also be capable of adjusting their output to meet peak electricity demand.
Possible Implications for Emission Reduction Commitments
This course may cast doubt on China’s commitments to gradually reduce coal use between 2026 and 2030. However, the directives state that new coal projects serve as a backup energy source compared to renewable sources. It is also emphasized that the country is actively expanding its emissions trading system, adding the steel, cement, and aluminum industries to it. This means that an additional 1,500 enterprises will be required to purchase carbon credits to cover their emissions.
Overall, the volume of carbon dioxide emissions covered by this system will reach 8 billion tons, accounting for over 60% of the country’s total. Launched in 2021, China’s emissions trading system previously only covered the energy sector.