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Can coal-reliant China and India make a smooth transition to green energy?
- China and India account for 60 per cent of global coal use and have pledged to slash emissions to reach a target of net zero by 2060-2070
- However, consumption of the fossil fuel in both nations has increased as industrial activity rebounds after three years of Covid
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The world’s two largest coal consumers China and India have outlined ambitious plans for boosting renewable energy, but consumption of the fossil fuel has started to pick up as industrial activity rebounds after three years of Covid.
The nations account for more than 60 per cent of global coal consumption, and are aiming to slash their emission levels by 2030 to arrive at net zero targets by 2060-2070. But fulfilling those goals is dependent on how soon they can wean themselves off fossil fuels.
China’s extensive renewable energy capabilities have outweighed those in many countries, analysts said.
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But it will continue to use coal in tandem with its renewable energy transitions given Beijing’s focus on energy security. In recent months, Chinese buyers have booked several cargoes of coal from Australia since Beijing lifted an import ban.
02:48
Chinese firms must decide whether to import coal ‘on their own’: China’s ambassador to Australia
Chinese firms must decide whether to import coal ‘on their own’: China’s ambassador to Australia
“China is likely to have increased power demand as its economy opens up after (the) Lunar New Year. The issue is whether renewables share, especially solar, will pick up,” said Ghee Peh, an energy finance analyst at the Institute for Energy Economics and Financial Analysis (IEEFA).
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