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Premier Li Keqiang signals coal comeback

The big environmental stories in the Chinese media this week (11-18 October)

Premier Li has signalled what could be a significant comeback of coal to the centre of China’s energy policy. In a biennial speech delivered to the country’s National Energy Commission on 11 October, Li highlighted the need to further develop coal technologies, naming “clean coal” and coalbed methane as focus areas.

The third such speech, it is seen as providing signals on the government’s priorities for the development of China’s energy sector. This year’s address comes at a critical moment when government departments are preparing to draft the next Five Year Plan, the blueprint for the country’s economic development.

This year’s speech contrasts sharply with the top-line message from Li’s 2016 address to the commission, in which he stated that China must “hasten the fundamental transition of energy supply and consumption, in order to support green and sustainable development.”

With energy security an increasing concern, Li also placed greater emphasis than in 2016 on the need to expand the domestic extraction of oil and gas – which will mean more fracking – alongside the need to secure more international cooperation deals on oil and gas, demand for which, despite slowing this year, is still growing in double figures.

China should also “develop renewable energy sources such as hydro, wind and solar, and improve grid integration,” Li said. But energy outlet EKnower points out that, importantly, the word “accelerate” was missing from Li’s comments for the first time. 

Lastly, Li made a short but notable comment that the country should “explore the commercial pathways of hydrogen,” a signal for companies to keep investing in this emerging sector.

Read more here from China Dialogue on the discussions about China’s next Five Year Plan 

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