China to Cut Dependence on Coal for Energy as Smog Chokes Cities; China’s coal use accounted for 65.7 percent of its total energy consumption in 2013

China to Cut Dependence on Coal for Energy as Smog Chokes Cities

China plans to cut its dependence on coal as the world’s biggest carbon emitter seeks to clear smog in cities from Beijing to Shanghai.

The nation is aiming to get less than 65 percent of its energy from coal this year, according to a government plan released today. Energy use per unit of gross domestic product will decline 3.9 percent from last year, compared with 2013’s target for a 3.7 percent decrease.

The plan may help President Xi Jinping’s drive to reduce pollution as environmental deterioration threatens public health and the economy. More than 600 million people were affected by a “globally unprecedented” outbreak of smog in China that started last January and spread across dozens of provinces, the Institute of Public & Environmental Affairs based in Beijing said Jan. 14.

“China previously targeted to cut coal consumption to below 65 percent in 2017,” Helen Lau, an analyst at UOB-Kay Hian Ltd. in Hong Kong, said by phone today. “Now they have officially pulled it earlier to 2014, which reflects that they want to speed up restructuring energy consumption and are determined to reduce air pollution.”

China’s coal use accounted for 65.7 percent of its total energy consumption in 2013, the 21st Century Herald newspaper reported Jan. 13, citing an official it didn’t name.

Coal Use

The country’s total energy consumption will rise 3.2 percent to 3.88 billion metric tons of coal equivalent, while output is expected to increase 4.3 percent to 3.54 billion tons, the government plan shows. Coal use will climb 1.6 percent to 3.8 billion tons, while production may gain 2.7 percent to 3.8 billion tons.

The government will encourage imports of high-quality, less-polluting coal and limit fuel with high sulfur and ash content, according to the National Energy Administration plan. Power consumption is expected to rise 7 percent to 5.72 trillion kilowatt hours.

China’s oil demand is forecast to rise 1.8 percent to 510 million tons, while crude output will climb 0.5 percent to 208 million tons. Natural gas demand will increase 14.5 percent to 193 billion cubic meters and production will reach 131 billion, up 12 percent, the NEA said.

To contact Bloomberg News staff for this story: Jing Yang in Shanghai at jyang251@bloomberg.net; Sarah Chen in Beijing at schen514@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: