Fate of coal demand lies in Beijing's hands

Significance

The unexpected decline in China's coal consumption is a direct consequence of the government's economic and energy policies.

Impacts

• Sustained decline in coal use will have an economic and political pay-off in reducing air pollution.
• Declining coal use in China's energy sector will reduce carbon dioxide emissions at a globally significant rate and scale.
• The fall in demand for imported coal will have a dramatic and prolonged downward impact on international coal prices.
• Domestic coal production will become concentrated in a few large state-owned mining companies.