China’s surging coal use prompted a review of its coal industry by the IEA, which is recommending ways the country can alleviate the “heavy social and environmental burdens” of coal production.
Coal accounts for about 70% of primary energy consumption in China and almost half the world’s coal supply comes from there. According to the IEA, 2.5 billion tonnes of coal was mined in China in 2007.
In its report Cleaner Coal in China, the IEA says the challenges created by coal use in China are not just a national issue, but an issue faced by other countries as well.
To deal with the impact of increased coal use, the IEA recommends a fairer and more transparent allocation of coal resources to mining companies. It suggests auctioning and the use of a bond system to help promote greater competition and greater compliance with environmental regulations.
The agency also recommends a “polluter pays principle” to directly link offending mines with levels of pollution.
The IEA is calling for a restructuring of the industry to allow mines to be operated by companies of varying sizes in order to encourage properly regulated markets.
Executive director Nobuo Tanaka said in China’s increasingly open economy, competitive markets must be the primary means of ensuring resources are used efficiently and cleanly.
“Experience in many countries shows this requires well-regulated markets with competition among many players – large and small, domestic and foreign,” he said.
Ranking safety a top priority, the IEA said in its report China needed to strengthen its mines inspectorate and provide enhanced training for its underground workers.
The last of the recommendations to cope with additional demand for coal is to balance supply and demand through the use of market-based energy and resource pricing.
The report says this will ensure resources are exploited, transported and used efficiently and effectively.
Meanwhile, the IEA is advocating more sustainable coal use in China and globally through the promotion, development and deployment of cleaner coal technologies.
Tanaka said new technologies were needed worldwide and China’s role in developing them was “critical”
“China has an opportunity to lead in the development of cleaner coal technologies in response to a growing, global market for clean energy,” he said.
The report calls for more government encouragement towards joint ventures and foreign direct investments to promote and develop cleaner coal technologies. The IEA recommends China quickly adopt and deploy well-proven technologies across the coal supply chain.
China also needs greater accountability and transparency that can be handled by lower levels of government, according to the IEA. The agency said this would lead to proper functioning environmental laws and the successful deployment of clean coal technologies.
The IEA also recommends that sulfur and carbon trading be central to China’s pollution abatement strategy, again to encourage the development and uptake of cleaner coal technologies in domestic and international markets.
Finally, the agency suggests China work with other nations to develop common technical standards for coal-fired plants, including better defining the “CO2 capture-ready” concept.
The IEA said international cooperation would allow the introduction of more affordable clean coal technologies in China and other countries.
Tanaka urged governments to accelerate their efforts in working with China.
