Why China Is Unlikely to Use More Coal Even as Iran War Rages
Fighting in Iran has sent oil above $100 a barrel, roughly doubled LNG prices across Asia, and pushed coal higher too. When oil and gas grow costly, coal starts to look like the cheaper alternative, and the conventional wisdom holds that consumption will follow. In China, however, the way its coal market is structured means that outcome is far less certain than it looks. Coal generates around 60% of China’s electricity and accounts for over 95% of all carbon emissions produced by the power sector. Steel production, which produces 15–17% of national emissions, also depends heavily on coal. Despite the country’s continued reliance on coal-fired energy, current conditions in…

