China Update - Nov 8

China Update - Nov 8

Postby dan_s » Mon Nov 08, 2021 10:18 am

Note below from the Raymond James Energy Research Team.

"Whenever energy transition in North America and Europe is discussed, the most frequent counterargument goes something like this: “Why does it matter if [fill in a high-income country, especially one with a small population] makes efforts to decarbonize its economy, when China is building hundreds of new coal plants?” It is unquestionably true that coal has long been the mainstay of the Chinese electricity mix: a key reason why China accounts for 30% of the world’s CO2 emissions. But it is also true that the Chinese electricity mix is decarbonizing, with coal already losing share in relative terms — and eventually, we believe, in absolute terms too."

"China is playing a somewhat low-key role at the COP26 climate conference that concludes this week, though what ultimately matters is what China does rather than what it says. From a near-term standpoint, it bears watching how the government responds to the coal supply problems that have beset China’s electricity market over the past few months. This latest episode provides a clear illustration of why excessive reliance on coal — or any other single energy source — is so unwise."
Dan Steffens
Energy Prospectus Group
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