China’s plan to build more coal-fired power “contradicts” its pledge to go carbon neutral by 2060 and risks creating RMB 2 trillion ($303.60 billion) in stranded assets, according to new research published on Friday, reported Reuters.
Beijing’s willingness to build new coal-fired capacity is a key litmus test that will determine whether the targets can be reached, said the Beijing-based consultancy Draworld Environment Research Center and the Centre for Research on Energy and Clean Air (CREA) in Helsinki.
Industry groups say China needs 1,300 GW of coal-fired capacity to meet growing demand, up from around 1,100 GW now. Around 250 GW is currently being planned.
“Given that half of China’s enormous coal capacity is less than 10 years old, and the equivalent of another 100 large plants are already under construction, there is definitely no need for more if the country wants to avoid massive waste of capital,” said Lauri Myllyvirta, CREA lead analyst.