China approves record coal power capacity in 2023, putting climate targets at risk

China's coal power: China approved an additional 114 gigawatts (GW) of coal power capacity in 2023, a 10 per cent increase from the previous year, raising concerns about its ability to meet climate targets.

Despite pledging to peak carbon emissions by 2030, China's rapid approval of new coal-fired plants could hinder its energy transition efforts, according to research by Global Energy Monitor (GEM) and the Centre for Research on Energy and Clean Air (CREA).

The country has sanctioned a total of 218 GW of new coal power in just two years, equivalent to Brazil's entire electricity demand. Construction commenced on 70 GW of new coal plants in 2023, up from 54 GW in 2022, with an additional 47 GW going into operation, a significant increase from 28 GW the previous year.

Economy's intensity goals

To meet its 2025 carbon and energy intensity goals, China must take "drastic action," the research highlighted. However, the surge in coal power approvals raises concerns about the country's ability to achieve its target of increasing the share of non-fossil fuels in its energy mix to 20 per cent by 2025.

China's grid inefficiencies contribute to the need for more coal power plants, despite having sufficient overall power capacity. The challenge lies in delivering electricity efficiently across provincial borders.

CREA forecasts a drop in carbon emissions this year as more clean energy is integrated into the grid, but the surge in coal plant approvals could lead to financial challenges for operators and hinder China's progress towards carbon neutrality.

(with Reuters inputs)