Coal in China

The People's Republic of China is the largest producer and consumer of coal and coal power in the world. China produces approximately 4.8 billion tons of coal per year, over half of the global total.^[1]

Coal supplies most of China's energy

Entrance to a small coal mine in China, 1999

A coal shipment underway in China, 2007

Historical coal production of different countries

In 2024, coal accounted for approximately 59% of China’s electricity generation, with wind, solar, hydro, and nuclear contributing most of the remainder. Specifically, wind and solar generated 10% and 9% of total electricity respectively, followed by hydropower (13%) and nuclear power (4%).^[2]

In 2024, China began construction on approximately 94.5 gigawatts (GW) of new coal-fired power capacity, marking the highest annual addition since 2015. Analysts generally frame new coal plants as backup capacity intended to stabilize the grid and ensure supply reliability as intermittent renewables like wind and solar become more dominant.^[2] However, a contrasting view highlights that coal mining companies are playing a dominant role in financing these new coal power projects. According to the Centre for Research on Energy and Clean Air, more than 75% of newly approved coal power capacity in 2024 was backed by coal mining companies or energy groups with coal operations, artificially inflating coal demand despite weak market fundamentals and undermining central government policies aimed at curbing coal consumption.^[3]

The long-term impact of China's energy transition policies is projected to reduce coal. According to DNV’s 2024 China Energy Transition Outlook, renewable energy is expected to supply 88% of electricity generation by 2050, with wind and solar each contributing around 38%, alongside smaller shares from hydropower and nuclear energy.^[4]

In September 2021, China pledged to end financing for overseas coal power plants, leading to the cancellation of at least 15 projects by April 2022.^[5][6]

History

Site of the former Ministry of Coal Industry in Hepingli, Beijing; the ministry was abolished in 1998

Coal mines in pre-industrial China

Ancient people in current China started using coal around 6,000 years ago.^[7] Historians suspects that the Chinese were involved in the surface mining of coal around 3490 BC, pioneering the pre-modern world.^[8] Fushan mine uses^{[clarification needed]} to be pointed out as the earliest coal mine in the ancient world and started around 1000 BC. In pre-modern China, coal was constrained both by the limitations of traditional technology and the weakness of demand.^[9]

In the 3rd century BC, Chinese people began burning coal for heat.^[10] The spread of coal use was gradual until the late 11th century when a timber shortage in north China produced a fast-paced expansion in coal mining and consumption.^[9] In 1000 AD, Chinese mines were ahead of most mining advancements^{[clarification needed]} in the world.^[10]

Coal mines in China faced similar problems to European ones. Both Chinese and European miners preferred to use drift mines sunk horizontally into the hillside for drainage of water. In the 18th century, British observers realized that such mines in Guangdong were opening out directly on to a river. Slope mines were the second most common type, as mines in Leiyang, Hunan.^[9]

In the 19th century, shaft mines were predominant, especially in north China. European observers interpreted that as a consequence of the lack of wood in the zone to hold up the roof in slope mines. Flooding was a constant problem, and several mines were abandoned for that reason.^[9]

Coal mines in China were as deep as those in Europe. In areas such as Shanxi with natural drainage, mines were as deep as 120 m. From Henan and Manchuria, mines had depths of 90 m or more.^[9]

Early coal consumption in China

Coal consumption in traditional China was substantial but low on a per capita basis. Main coal demand came from industry. The earliest references to coal are in the context of smelting methods. The technology was spread from the central plain to outlying areas in China.^[9]

In the 11th century, the iron produced in north China was smelted in coke-burning blast-furnaces. Deforestation in that zone forced to turn to the use of coke, mushrooming ironworking centers along the Henan-Hebei border. Accounts of that period estimate that at least 140 000 tons of coal a year were used by the iron industry in that zone. Chinese scientist Song Yingxing suggested that around 70% of iron was smelted with coal. Meanwhile, 30% used charcoal. Shanxi was the center of the iron industry in late traditional times.^[timeframe?] German scientist Ferdinand von Richthofen accounted for the use of coal in several areas of the province.^[9]

Early descriptions of coal for household purposes go back until the 6th century when a writer pointed out that food tastes different according to whether it was cooked over coal, charcoal, bamboo, or grass. From the 11th century, coal was the main option in the household in the capital at Kaifeng. At the beginning of the 12th century, twenty new coal markets were established and coal replaced charcoal in the zone. Increasing demand led to the development of mining in areas of Henan and Shandong. Marco Polo claimed that coal was "burnt through the province of Cathay" and pointed out that was used in bathhouses.^[9]

Production

Coal production in China, 1950–2012

Production of coal within China by type

For reference: GDP of the PRC. Coal production and usage demonstrates a hypersensitivity to economic changes.

Coal is the most abundant mineral resource in China.^[11]: 21 China is the world's largest coal producer,^[12] producing 3.84 billion tonnes in 2020 and accounting for approximately half of global production.^[13][14]

Geographic distribution

China's coal reserves are concentrated in Inner Mongolia, Shanxi, and Shaanxi provinces.^[15] This northern concentration creates significant logistical challenges, as coal transport to southeastern coastal regions consumes nearly half of China's rail capacity.^[16]

Major mining operations

A coal mine near Hailar District

China's largest open-pit coal mine, Haerwusu in Inner Mongolia, operates with an annual capacity of 20 million tonnes and reserves of 1.73 billion tonnes.^[17] Seven major coal companies each produce over 100 million tonnes annually, including Shenhua Group, China National Coal Group, and Shanxi Coking Coal Group.^[18]

Trade

China is the world's largest coal importer, with Russia and Indonesia as primary suppliers in the 2020s.^[19][20] While China produces most thermal coal domestically, it imports coking coal for steel production.^[21]

Following a 2020-2022 boycott of Australian coal, China's imports from Mongolia and the United States increased.^[19] In 2023, imports from Australia resumed at 23.47 million metric tons, though still below pre-boycott levels of 77.51 million metric tons.^[22]

Consumption

Coal provides 57% of China's energy consumption and 49% of electricity generation as of 2020.^[23] The National Development and Reform Commission targets a cap of 3.8 billion tonnes annual consumption.^{[citation needed]} Major consumers include:

• Electricity generation: The dominant use, consuming the majority of coal production
• Industrial sector: Particularly the steel industry in China, which relies on metallurgical coal^[24]
• Residential use: Limited to rural areas, where coal burning causes severe health impacts^[25]

Environmental and health impacts

Most CO2 is from coal

Climate impact

China's coal consumption generated 7.24 billion tonnes of CO₂ in 2019, approximately 14% of global greenhouse gas emissions.^[26] China has committed to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. The Chinese national carbon trading scheme launched in 2021 to support these goals.

Air pollution

Air pollution in China from coal combustion causes approximately 750,000 premature deaths annually.^[27] Public concern has triggered protests, such as the 2011 Haimen demonstrations against power plant expansion.^[28]

In response, the government has:

• Implemented emission standards for NO_x, mercury, SO₂, and soot
• Closed Beijing's last coal plants by 2019, replacing them with gas-fired facilities^[29]
• Set targets to reduce coal's share in the energy mix

Indoor air pollution

Rural households burning coal in unvented stoves face severe health risks from arsenic, fluorine, and mercury exposure, causing skeletal fluorosis in over 10 million people.^[30] Indoor air pollution causes an estimated 420,000 premature deaths annually.^[31]

Mining safety

Main article: List of coal mining accidents in China

China's coal mining fatality rate has improved significantly but remains high by international standards. Deaths decreased from 5,798 in 2000 to 1,049 in 2013.^[32] The industry employs forced labor according to U.S. Department of Labor reports.^[33]

Safety improvements include:

• Closure of small, dangerous mines (capacity below 300,000 tons)
• Enhanced ventilation and fire control requirements
• Crackdowns on unregulated operations

Energy transition

Economic factors

According to BloombergNEF, new solar power became cheaper than existing coal plants in 2021.^[34] The coal sector employs 2.6 million workers, making a just transition critical.^[35] Energy storage and demand response are essential for replacing coal generation.^[36]

Policy challenges

Efforts to reduce coal capacity have created energy shortages. In 2021, production caps led to electricity outages, prompting the government to relax environmental standards and mandate full-capacity operations.^{[37]: 70–72}

Global context

While global coal use declined in 2022, China added 26.8 GW of coal capacity and now represents 68% of worldwide coal projects under development.^[38] However, at the 2021 UN General Assembly, President Xi Jinping pledged to stop building coal-fired power projects abroad.^[39]

See also

• China portal
• Energy portal

• Mining industry of China
• Category:Coal companies of China
• Clean coal technology
• Debate over China's economic responsibilities for climate change mitigation