China has become a global leader in the energy industry and is developing a variety of energy generation solutions that will develop record levels of energy in the not-too-distant future. However, the coal sector in China remains a large part of the energy capacity that it produces. Having said that, the country’s President has led the charge to reduce the amount of coal being produced, and the importance of the coal sector overall. China has a variety of alternative energy creation solutions that are growing, and soon the nation will reach its lofty goals of phasing out its reliance on coal.
China’s populace requires the energy sector to produce vast amounts of electricity
A country as industrious as China will always have people looking to navigate the legal loopholes that allow them to produce more than necessary. Now we are not saying that the coal sector in China is breaking any laws, but it has come to light that the Chinese government is cracking down on oversupply in the sector. China produces vast amounts of coal that are needed for electricity generation and exports.
China is one of the most technologically advanced nations in the world. The city of Chongqing is a myraid of bright lights and insane tech displays all over the city’s skyscrapers. It is also a global leader in the AI sector. All those advanced technological projects and industries need power, and a lot of it. Chongqing used an estimated 140.43 billion kWh of electricity in 2022 and 145.3 billion kWh in 2023, showing a continued increase in the city’s electricity consumption.
China’s government is cracking down on oversupply in the coal sector
The authorities in Beijing recently announced a sweeping government crackdown on the oversupply concerns that have been raised across several industries, especially those that are subsidized by the Chinese government. One such sector is the solar sector; however, the focus recently has been on the coal sector, with the government leading inspections in the coal sector and punishing those who are guilty of oversupply.
The government has been inspecting coal mines to make sure they are not exceeding their quotas, which has led to a decline in coal output for the last two months. In July, the state statistics bureau said that the output for the coal sector reached a record low of 80.99 million tons. That increased to 390.5 million tons in August, but the government expects the output to continue to decline as the inspections continue.
Unlike the United States, which is busy auctioning off coal leases in an attempt to increase energy capacity through the coal sector, China is promoting green energy and alternative power solutions. The Ministry of Foreign Affairs released a statement outlining its position in the energy sector.
“China will, by 2035, reduce economy-wide net greenhouse gas emissions by 7% to 10% from peak levels, striving to do better; increase the share of non-fossil fuels in total energy consumption to over 30%; expand the installed capacity of wind and solar power to over six times the 2020 levels, striving to bring the total to 3,600 gigawatts; scale up the total forest stock volume to over 24 billion cubic meters; make new energy vehicles the mainstream in the sales of new vehicles; expand the National Carbon Emissions Trading Market to cover major high-emission sectors; and basically establish a climate adaptive society.” – Ministry of Foreign Affairs People’s Republic of China
China has the potential to become a global leader in the energy sector
China is an exceedingly industrious country. We all remember the hospitals that were built in only a few short days during the COVID-19 pandemic. The nation has the potential to completely change the focus for the energy sector if it can manage to stomp out the oversupply issue. China is not looking to compete with the United States, which has gone so far as to approach the courts to force a pause on certain environmental procedures aimed at protecting the environment. If the current trends continue, China will become the global leader in the energy sector, for better or for worse.
