China taking steps to reduce overcapacity in coal production


China aims to optimize the structure of its coal production by reducing outdated capacity and increasing the use of cleaner products. Total coal output will stand at about 3.9 billion tons in 2020, compared with 3.75 billion tons in 2015, while China will consume 4.1 billion tons of coal, up from 3.96 billion tons in 2015.

This year the policy of reducing overcapacity, de-leverage and reduce storage has worked well, especially in coal industry where the annual goal has been far achieved. Industry structure and energy consumption will be built more efficiently with green energy. Coal will still be the dominant energy, while natural gas and nuclear energy will gradually replace the old polluted methods.

The reduction in coal production is a good step to reach the double objectives of: 1) Reduce of the capacity. 2) Move to clear energy sources. Still even consider this reduction of 2020 objective, coal energy production still represent a large proportion of overall energy sector, so still more needs to be done.


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