Is coal power winning the US-China trade war?

(Eco Business, 14 Nov 2019) Premier Li Keqiang has re-emphasised coal as China’s primary source of energy security, and toned down the urgency of the low-carbon transition.

China has signalled that coal power will be a top priority within national energy policy as the government prepares its next Five Year Plan (2021-25).

On 11 October, Premier Li Keqiang chaired a meeting of the National Energy Commission in Beijing that emphasised China’s energy security and coal utilisation and downplayed the importance of a rapid transition away from fossil fuels.

Each meeting of the commission, which was established in 2010 and has met only four times, has had a significant impact on policymaking. Chaired by Premier Li and attended by more than 20 chiefs of China’s ministries and bureaus, the commission is the top body for coordinating energy policy.

Why is energy security back at the top of the agenda?

Li told the conference: “The government should diversify energy supply to improve energy security… enhance domestic oil and gas exploration and development efforts, and promote oil and gas reserves and production, in order to improve oil and gas self-sufficiency”.

The renewed focus on energy security comes amid an increase in domestic consumption of oil and gas, which is largely being met through imports. China’s dependence on energy imports rose from 9 per cent in 2014 to more than 20 per cent in 2018.

China’s domestic crude oil production has declined and efforts to tap unconventional sources of natural gas, such as shale gas and coalbed methane, have faltered.

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Eco Business, 14 Nov 2019: Is coal power winning the US-China trade war?