(Bloomberg) — Increased spending this year on coal power and steel production threatens China’s climate goals and could end up as wasted investment, according to clean air campaigners.
An acceleration in approvals in the first half of 2022, representing as much as 230 billion yuan ($32 billion) in investment, comes despite declines in coal-fired power generation and steel output, according to a report authored jointly by the Centre for Research on Energy and Clean Air and Global Energy Monitor.
Much of that investment could end up stranded. Announcements of new coal projects have slowed, suggesting reluctance on the part of utilities because coal-fired power has recently been “grossly loss-making,” the report said. China’s renewables capacity, meanwhile, continues to rapidly expand, and is approaching the market size needed to peak and reduce emissions.
Stung by power shortages that crippled the economy last year, China has raised production of coal to record levels to prevent a repeat of the crisis. However, extending its dependence flies in the face of scientists who say that the world needs to rapidly phase-out its use of the dirtiest fossil fuel to avoid the worst effects of global heating.
“Although the ramp-up of coal might be a short-term policy adjustment, it poses a risk to China’s long-term climate commitments,” said Xinyi Shen, a researcher at CREA. “With its goal of hitting carbon neutrality by 2060, China is running out of time to transition away from fossil fuels.”
China is the world’s biggest producer and consumer of both coal and steel. The new permits include 15 gigawatts of coal-fired power capacity and 30 million tons a year of coal-based blast furnaces. The steel industry, which has pledged to peak emissions by 2025, is China’s second worst emitter after power generators. “There is an urgent need to align investments in new production capacity in the steel sector with the goal of peaking and reducing CO2 emissions,” the report said.
Events Today
(All times Beijing unless noted otherwise)
APPEC conference in Singapore’s China spotlight, including speakers from PetroChina, and Rongsheng Petrochemical, 09:00
Today’s Chart
China’s solar sales to Europe have soared this year as the continent wrestles with an unprecedented energy crisis. But tens of thousands of the panels are sitting unused in warehouses because there aren’t enough engineers to install the rooftop modules.
On The Wire
China’s MMG to Invest $2B in Peru’s Las Bambas in 5 Yrs: Reuters
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
