China’s investments in coal-based power, iron and steel capacity accelerated in the first half of the year.

New coal-fired power plants and coal-based iron and steel facilities increased.

The Chinese government approved 15 gigawatts (GW) of coal-fired power plants, 30 million tonnes per annum (Mtpa) of new coal-based iron-making capacity and 15 Mtpa of new coal-based steel plants in the first half of 2022, according to a report released on Wednesday by climate non-profit organisations the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM).

China’s coal-fired power generation declined by 4 per cent year on year in the first half of 2022, according to China Electricity Council. Meanwhile, the output of China’s crude steel production fell by 6.5 per cent in the same period.

According to the National Energy Administration, coal-fired power plants produced 60 per cent of China’s electricity in 2021, making them the largest carbon-emitting sector in the country, followed by the iron and steel sector.

China, the world’s largest steel producer, has stepped up efforts to replace existing coal-based capacity with low-carbon alternatives to reduce the emission of pollutants and greenhouse gasses in the ferrous sector. However, unreported capacity expansions, higher production efficiency and a revival of low-quality steel production resulted in a discrepancy between the state planner’s capacity targets and actual capacity, the report found.