Climate warning
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China πŸ‡¨πŸ‡³

Climate warning

China's manufacturing wobble may drive coal use even higher

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China is already on track to emit the most coal-fired power emissions in history in 2023, but may now push coal use up another gear after the manufacturing sector unexpectedly contracted in April following a strong start to the year.
The softer manufacturing data is expected to trigger fresh stimulus measures designed to spur increased industrial output, as well as steps to help the country's ailing property sector, which will lead to greater energy use throughout the world's largest manufacturer, exporter and polluter.
In turn, power producers are expected to increase use of high-polluting but cheap coal as the main source of power generation, as the tentative nature of the economic recovery means that authorities will be keen to ensure that power costs are as low as possible for businesses and industries.
STIMULATED RECOVERY
Beijing has already taken several steps to restore China's economy to a growth path in 2023, following a COVID-19-hit 2022 that curtailed industrial activity and goods production.
The stimulus measures included financial support for export-oriented manufacturers and the easing of movement restrictions so that workers and goods could move more freely, and seemed to have had the desired effect by generating strong growth over the opening three months.
Output of a slew of key appliances including refrigerators and air conditioners, and industrial materials such as crude steel, also increased sharply since late 2022 as the revival measures took root.
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However, there are signs that momentum slowed in April after an official measure of manufacturing activity receded into contraction territory due to a patchy global consumer marketplace that could not economically absorb the flood of goods and materials emerging from China's re-invigorated plants.
To combat any further slowdown, Beijing unveiled fresh supportive measures last week, including plans to boost auto exports through cheaper financing, and is expected to drive fresh investment into the country's property sector, which has historically been a key pillar of the Chinese economy.
The combination of new incentives for large manufacturers alongside anticipated support for the construction and property markets will result in greater total power consumption in China over the coming months, and in turn even higher emissions.

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36 more agrees trigger social media ads

  • Kevin

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    62 w

    The Chinese government should really rethink this move

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    • Rukia Ahmed Abdi

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      62 w

      This is very disturbing. China must relook this move

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        • Tabitha Kimani

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          62 w

          China will need to seriously separate itself with the love for their coal use.

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          • Annett Michuki..

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            62 w

            such back and forth moves are delaying zero emissions drive,

            4
            • Munene Mugambi

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              China had to find clean energy for their manufacturing

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              • Joseph Githinji

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                62 w

                China must rethink their manufacturing systems.

                13
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