China’s Imports of Russian Coal Slump As Import Taxes Bite

From Bloomberg News . . . . . . . . .

Chinese purchases of Russian coal slumped in the first two months of the year, after Beijing reimposed import taxes that make Russian supplies less competitive.

While China’s total coal imports over January and February surged 23% year-on-year to 74.5 million tons, Russia’s sales fell 22% to 11.5 million tons, according to the latest customs data. Import levies were restored at the start of the year, although other major suppliers like Indonesia and Australia aren’t affected due to free-trade agreements with Beijing.

The tariffs were removed in May 2022 to guard against supply risks after Moscow’s invasion of Ukraine roiled global energy markets. That helped pave the way for record imports last year, which included an increased portion of Russian coal shunned by other buyers. Now, policy has shifted to protecting China’s mining companies from the consequences of a glut after domestic output also rose to an all-time high.

Russia is still China’s No. 2 supplier after Indonesia, but the threat of trade actions could start to affect its eastward flows.

The US put sanctions on Russian coal exporters including Suek JSC, the nation’s biggest producer of the fuel, and Mechel PJSC in February. That’s curbing interest from buyers in China, worried about being hit by punishments that could involved restricting their access to shipping or banking services.

“Russian imports may stay at current levels, given the political uncertainties,” Feng Huamin, an analyst at the China Coal Transportation and Distribution Association, said at a media briefing on Wednesday.

Source : Mining

Global Coal Exports and Power Generation Hit New Highs in 2023

Gavin Maguire wrote . . . . . . . . .

Worldwide electricity generation from coal hit record highs in 2023, while thermal coal exports surpassed 1 billion metric tons for the first time as coal’s use in power systems continues to grow despite widespread efforts to cut back on fossil fuels.

Coal-fired electricity generation was 8,295 terawatt hours (TWh) through October, up 1% from the same period in 2022 and the highest on record, according to environmental think tank Ember.

Total thermal coal exports were 1.004 billion metric tons for the whole year, up by 62.5 million tons or 6.6% from 2022, ship-tracking data from Kpler shows.

Emissions from coal-fired electricity generation also hit new highs through October 2023, topping 7.85 billion tons of carbon dioxide and equivalent gases, around 66.7 million tons more than during the same period in 2022, according to Ember.

The continued expansion in coal use and emissions provides a stark reminder to climate trackers that the high-polluting power fuel remains integral in key power systems even as solar, wind and other clean energy sources are deployed at a record rate.

GROWING ASIAN CONCENTRATION

The footprint of coal mining and exports and its use in power generation is overwhelmingly concentrated in Asia, as many other parts of the world including Europe and North America have adopted measures to phase down the use of coal for power.

But even as the geographical area of coal use and trade is shrinking, the outright volumes of extraction, exports and consumption in power plants remains on a rising trajectory.

Indonesia was the top thermal coal exporter in 2023, shipping out a record 505.4 million tons for the year, up 54 million tons or 12% from 2022’s levels.

For the first time, Indonesia accounted for more than half of all thermal coal shipments within a calendar year in 2023, Kpler data shows.

Australia was the second largest thermal coal exporter, shipping out 198 million tons, up 12.5 million tons (7%) from the year before.

Russia, South Africa and Colombia were also notable exporters, shipping 103 million tons, 60 million tons and 51 million tons respectively last year.

On the import side, China was the top thermal coal buyer, taking delivery of a record 325 million tons, which is 109 million tons more than 2022’s total.

India was the second biggest importer (172 million tons), followed by Japan (109 million tons), South Korea (80 million tons) and Taiwan (51 million tons).

Other notable importers included the Philippines (37 million tons) and Vietnam (31 million tons), both notching up strong double-digit percentage increases in year-on-year imports.

LOCKED IN GENERATION

In major coal importing nations, coal-fired electricity generation increased on the year in China, India, the Philippines, Turkey and Vietnam, Ember data shows.

Coal-fired output declined by 8.2% in Japan and by 4% in South Korea, but those reductions were nearly offset by the increase in Vietnam alone last year.

Globally, around 82% of all coal-fired electricity generation occurred within Asia in 2023, up from an average of around 75% in 2019, according to Ember.
Asia’s share of coal use and imports should continue to climb as other regions further reduce coal consumption.

But total volumes of Asia’s coal imports and consumption for power generation also look set to continue climbing, especially in major and fast-growing economies such as China, India, Vietnam, the Philippines and Indonesia, where cheap power sources remain critical for industry competitiveness.

Those same countries are also committed to steep increases in the deployment of renewable energy sources, but over the near term they look just as liable to continue steering total coal use and emissions to further heights.

Source : Reuters

Chart: China’s Coal Production Hit Record in 2023

China’s coal output hit a record high last year, as the country ramped up production to ensure energy security and avoid a repeat of crippling shortages in the preceding years.

Coal production reached 4.66 billion tons in 2023, a 2.9% increase year-on-year, according to data from the National Bureau of Statistics. It also marks the third consecutive year that annual output has surpassed 4 billion tons.

Source : Caixin

Infographic: Which Countries Are Most Reliant on Coal?

See large image . . . . . .

Source : Visual Capitalist

Chart: Fewer Coal Power Plants Close in 2022 Than in Recent Years

Source : Statista

China Promotes Coal in Setback for Efforts to Cut Emissions

Joe Mcdonald wrote . . . . . . . . .

China is promoting coal-fired power as the ruling Communist Party tries to revive a sluggish economy, prompting warnings Beijing is setting back efforts to cut climate-changing carbon emissions from the biggest global source.

Official plans call for boosting coal production capacity by 300 million tons this year, according to news reports. That is equal to 7% of last year’s output of 4.1 billion tons, which was an increase of 5.7% over 2020.

China is one of the biggest investors in wind and solar, but jittery leaders called for more coal-fired power after economic growth plunged last year and shortages caused blackouts and factory shutdowns. Russia’s attack on Ukraine added to anxiety that foreign oil and coal supplies might be disrupted.

“This mentality of ensuring energy security has become dominant, trumping carbon neutrality,” said Li Shuo, a senior global policy adviser for Greenpeace. “We are moving into a relatively unfavorable time period for climate action in China.”

Coal is important for “energy security,” Cabinet officials said at an April 20 meeting that approved plans to expand production capacity, according to Caixin, a business news magazine.

The ruling party also is building power plants to inject money into the economy and revive growth that sank to 4% over a year earlier in the final quarter of 2021, down from the full year’s 8.1% expansion.

Governments have pledged to try to limit warming of the atmosphere to 2 degrees Celsius (3.6 degrees Fahrenheit) above the level of pre-industrial times. Leaders say what they really want is a limit of 1.5 degrees Celsius (2.7 degrees Fahrenheit).

Scientists say even if the world hits the 2-degree goal in the 2015 Paris climate pact and the 2021 Glasgow follow-up agreement, that still will lead to higher seas, stronger storms, extinctions of plants and animals and more people dying from heat, smog and infectious diseases.

China is the top producer and consumer of coal. Global trends hinge on what Beijing does.

The Communist Party has rejected binding emissions commitments, citing its economic development needs. Beijing has avoided joining governments that promised to phase out use of coal-fired power.

In a 2020 speech to the United Nations, Xi said carbon emissions will peak by 2030, but he announced no target for the amount. Xi said China aims for carbon neutrality, or removing as much from the atmosphere by planting trees and other tactics as is emitted by industry and households, by 2060.

China accounts for 26.1% of global emissions, more than double the U.S. share of 12.8%, according to the World Resources Institute. Rhodium Group, a research firm, says China emits more than all developed economies combined.

Per person, China’s 1.4 billion people on average emit the equivalent of 8.4 tons of carbon dioxide annually, according to WRI. That is less than half the U.S. average of 17.7 tons but more than the European Union’s 7.5 tons.

China has abundant supplies of coal and produced more than 90% of the 4.4 billion tons it burned last year. More than half of its oil and gas is imported and leaders see that as a strategic risk.

China’s goal of carbon neutrality by 2060 appears to be on track, but using more coal “could jeopardize this, or at least slow it down and make it more costly,” Clare Perry of the Environmental Investigations Agency said in an email.

Promoting coal will make emissions “much higher than they need to be” by the 2030 peak year, said Perry.

“This move runs entirely counter to the science,” she said.

Beijing has spent tens of billions of dollars on building solar and wind farms to reduce reliance on imported oil and gas and clean up its smog-choked cities. China accounted for about half of global investment in wind and solar in 2020.

Still, coal is expected to supply 60% of its power in the near future.

Beijing is cutting millions of jobs to shrink its bloated, state-owned coal mining industry, but output and consumption still are rising.

Authorities say they are shrinking carbon emissions per unit of economic output. The government reported a reduction of 3.8% last year, better than 2020′s 1% but down from a 5.1% cut in 2017.

Last year’s total energy use increased 5.2% over 2020 after a revival of global demand for Chinese exports propelled a manufacturing boom, according to the National Bureau of Statistics.

Stimulus spending also might raise carbon output if it pays for building more bridges, train stations and other public works. That would encourage carbon-intensive steel and cement production.

China’s coal-fired power plants operate at about half their capacity on average, but building more creates jobs and economic activity, said Greenpeace’s Li. He said even if the power isn’t needed now, local leaders face pressure to make them pay for themselves.

“That locks China into a more high-carbon path,” Li said. “It’s very difficult to fix.”

Source : AP

Infographic: How Far Are We From Phasing Out Coal?

See large image . . . . . .

Source : Visual Capitalist

Chart: Coal Prices Turn Down After Reaching an All Time High in March 2022

Source : Trading Economics

Charts: Coal Reached an All Time High in March 2022

Source : Trading Economics

Chart: China’s Coal Miners Pile Up Record $111 billion in Profit

Coal mining companies posted 702.3 billion yuan ($111 billion) in profit for 2021, a figure that soared 213% year-on-year, figures from the National Bureau of Statistics (NBS) showed. The surging earnings also made it the third-most profitable sector tracked by the bureau, behind electronics and communication-equipment makers and chemical products manufacturers.

Source : Caixin