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The View | Russian gas imports won’t improve China’s air quality when Beijing continues with its policy of excessive coal consumption
- Dmitriy Frolovskiy says Beijing may tout its growing cooperation with Russia in natural gas, but the real problem lies with China’s reliance on coal and the coal-guzzling metals industry for economic growth
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As China clamps down on air pollution, Beijing is seeking to replace coal plants with cleaner-burning natural gas, especially for heating during winter. Consequently, China has intensified relations with Russia, one of the world’s leading gas exporters, to expand energy ties. Although increasing gas use works towards alleviating some of the tensions inherent in the generation of energy, the move doesn’t address the underlying issue of pollution – the fact that China continues to rely on coal and the coal-guzzling metals industry for economic growth.
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China is the main driver behind global energy demand and further predictions suggest Beijing’s share will increase to 24 per cent in 2040, or around 27 per cent of global net demand. At the same time, Beijing is making attempts to decouple growth from carbon dioxide emissions through the implementation of better energy-efficiency policies, and – most recently – through importing Russian natural gas in an attempt to create a cleaner energy mix.
The Middle Kingdom’s desire for natural gas is rightly considered a boon for Russia. Given this growing demand, Moscow has eyed long-term energy exports to China for the best part of two decades. And there have been some successes recently: Beijing received the first seaborne gas shipment in July. Several pipeline projects transporting Siberian gas to China are nearing completion, as well.
But, while strengthening the bilateral relationship is certainly a geopolitical win, Beijing needs to be careful that its growing gas use doesn’t divert attention from the underlying problem: persistent and excessive coal consumption.
Indeed, China remains the single largest coal consumer in the world, with the resource representing more than 60 per cent of the national energy mix. This disproportionate reliance has lasting negative effects on the country’s environment, poses serious public health risks, and places pressure on the political leadership. Calls for pollution and carbon emissions to be reduced have mounted in the wake of several reports chronicling the dramatic extent of bad air and the effects of rising nitrogen dioxide and ozone levels.
Rapid change, however, is unlikely as long as the current structure of the Chinese economy remains – a structure that is powered by mountains of coal. Several diversification efforts are under way, but the black stuff remains the leading fuel of China’s aluminium and steel industry, which has been churning out excess production for years. According to estimates, most Chinese smelters are currently losing money due to low aluminium prices and high costs, rendering the industry heavily indebted.
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