China is still investing billions in three coal mines

China is still investing billions in three different coal mining projects. This means that the country will continue to use fossil fuels that are avoided in most parts of the world. China’s National Development Authority plans to invest 24 billion yuan (approximately 3.3 billion euros) in projects.

With this investment, the Chinese government hopes to prevent new power shortages like those that arose late last year. As a result, parts of the Chinese economy came to a standstill for some time. The shortage was due to a slowdown in the supply of coal due to the rapid rise in fuel prices. This led many countries to switch to gas to produce electricity. However, now that gas is also expensive, coal is once again very popular.

Investments are required to contribute to the extraction of an additional 19 million tonnes of coal annually. Two of the three coal mining projects will be in the northwestern province of Shanxi and the other in Mongolia. The projects are mostly funded by banks. This contradicts the promises of other banks around the world, which have often promised not to invest in fossil fuels through climate contracts.

China has been increasing coal production in recent times. Currently, China is committed to energy security and, unlike other countries, has stated that CO2 will not be neutral until 2060. The Chinese government recently announced that it will allow coal-fired power plants to operate at full capacity. But the move raises alarm bells among environmental organizations about the country’s climate targets.

Two-thirds of China’s electricity is generated by coal. The country accounts for almost a third of global greenhouse gas emissions. This is many times more than the emissions of the United States and the European Union. Therefore, reducing China’s emissions is considered important in achieving the Paris climate goals.