China has launched an action plan to promote the low-carbon transformation of coal-fired power, co-issued by the National Development and Reform Commission and the National Energy Administration (NEA). The plan aims to diversify financing channels and offer preferential loan policies to qualified projects, ensuring energy security amid the global green energy transition.
Key aspects of the plan include enhancing financial support for low-carbon projects through ultra-long special treasury bonds and local policy support. Projects are encouraged to seek financing via green bonds and technology transformation loans.
Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, stated that financial support and preferential loans will attract more private funds to low-carbon transformation projects.
Data from the NEA revealed that China’s total installed power generator capacity reached 3.03 billion kilowatts from January to May 2023, with coal-fired power contributing 1.4 billion kilowatts. Despite the focus on green energy, coal remains crucial in China’s energy structure, accounting for 26.4% of overall energy consumption in 2023.
The plan targets a 20% reduction in carbon emissions for the first batch of projects by 2025 and a 50% reduction by 2027, compared to 2023 levels. Cong Yi, a professor at Tianjin School of Administration, emphasized that low-carbon coal-fired power will facilitate a smoother and more moderate green energy transition.
