The Great Coal Cap
Since the beginning of the 21st century, China has accounted for over four-fifths of global coal consumption
growth, half of which is thermal coal used predominantly to fuel China’s coal-fired power generation fleet. The
purpose of this report is to demonstrate to key stakeholders that the dynamics of China’s thermal coal sector
are changing and that a greater understanding of these dynamics is required, particularly in the context of
transitioning to greener growth and the role that financial market actors play in this process.
A number of downside drivers are combining that will slow China’s thermal coal demand growth to a likely
peak. These include:
• Slowing total power demand;
• Reduced attractiveness of thermal coal as a fuel to meet power ;demand; and
• Increasingly competitive non-coal power sources taking a greater proportion of new power generation capacity.
In the broader context, the Chinese Government is taking substantive action in addressing critical domestic
challenges, most notably on air pollution and water scarcity. read more>