World Biz
China doubles down on coal as energy crunch bites
China has stepped up spending on coal in the face of extreme weather, a domestic energy crunch and rising global fuel prices, raising concerns Beijing’s policies may hinder the fight against climate change.
The country is the world’s biggest emitter of the greenhouse gases driving global warming, and President Xi Jinping has vowed to reduce coal use from 2026 as part of a broad set of climate promises.
Beijing has committed to peaking its carbon emissions by 2030 and achieving carbon neutrality by 2060.
Overall carbon emissions in China have fallen for four consecutive quarters on the back of an economic slowdown, research reported by climate monitor Carbon Brief showed in early September.
But at the same time, slowing growth has led authorities to rely on smokestack industries in an effort to boost the economy.
The push to shore up coal power which still makes up most of China’s energy supply has alarmed analysts who warn that it will make an eventual transition to a renewables-dominated energy mix more difficult.
Spooked by an energy shortage last autumn, Chinese authorities in spring ordered coal producers to add 300 million tonnes of mining capacity this year the equivalent of an extra month of coal production for the country.
In just the first quarter of 2022, regulators endorsed the equivalent of half the entire coal-fired power plant capacity approved in 2021, according to Greenpeace.
Inefficiencies
Authorities have also burned and mined more coal in recent weeks in order to meet increased air conditioning demand and make up for shrunken hydropower dams during China’s hottest-ever summer.
Premier Li Keqiang in June called for “releasing advanced coal capacity, as much as possible, and implementing long-term coal supply”.
The independent Climate Action Tracker warns that even the “most binding” climate targets laid out by Beijing would be in line with global warming of between three and four degrees Celsius before the end of the century well above the Paris Agreement’s goal to limit global warming to 1.5C.
To meet that goal, it said, China would “need to reduce emissions as early as possible and well before 2030” as well as “decrease coal and other fossil fuel consumption at a much faster rate than currently planned”.
Beijing’s unwillingness to let go of coal stems partly from inefficiencies in its power grid that prevent surplus energy from being transported across regions.
Coal and gas give local officials a ready source of energy and are, in practice, “the only way for local officials to avoid power shortages”, energy researcher Lauri Myllyvirta wrote in a Carbon Brief report.
‘Politically crucial year’
China has made real progress in building up renewable energy capacity.
The current operating solar capacity in the country accounts for nearly half the global total, according to San Francisco-based non-governmental organization Global Energy Monitor (GEM).
But unlike wind or sunlight, stockpiles of coal and gas can be held for long periods of time and deployed as needed, giving local authorities a sense of security.
Yet, building more coal facilities means less focus on fixing problems with the grid, Myllyvirta said in comments to AFP, warning plant owners would be motivated to “slow down the transition as they will have an interest in making use of their brand-new assets”.
At the same time, the central government wants to “avoid large-scale blackouts, which we witnessed last winter in the northeastern provinces, in this politically crucial year for Xi”, Byford Tsang, senior policy adviser at climate think-tank E3G, told.
President Xi is expected to secure an unprecedented third term in power at a major Communist Party meeting next month.
Tsang said skyrocketing international energy prices driven by the Russian invasion of Ukraine also pushed Beijing to shore up domestic coal production, pointing to a 17.5pc drop in coal imports in the first half of this year compared to a year earlier.
Expanding coal capacity as a quick fix, however, goes against “immediate annual cuts in coal use that the UN and leading research organizations have called for”, GEM analysts said.
GEM said all of China’s proposed new mines could together emit as much as six million tonnes of greenhouse gas methane each year once operational. That is roughly equivalent to the annual methane emissions of Austria, according to World Bank data.
“The more coal China builds now, the harder it becomes to finance and deliver renewable energy projects later,” Wu Jinghan, climate and energy project leader for Greenpeace East Asia, told AFP.
“The longer we wait to transition, the steeper the transition pathway becomes,” Wu said. “That means more disruptive and higher risk, financially and environmentally.”
In a move aimed at enhancing global communication and cooperation with ASEAN, the Guangxi International Communication Centre was inaugurated on September 6 in Nanning. This initiative is under the leadership of the Publicity Department of the Party Committee of the Guangxi Zhuang Autonomous Region and is spearheaded by Guangxi Daily in collaboration with Guangxi Radio and Television.
Chen Yijun, a member of the Standing Committee of the Party Committee of Guangxi Zhuang Autonomous Region, along with other key figures including Liu Weiling, Deputy Editor-in-Chief of China Daily, and Yu Yunquan, Deputy Director of China Foreign Languages Administration, were present. Delegates from ASEAN nations, as well as leaders from media houses in Cambodia, Laos, Vietnam, Hong Kong, and Macao, also attended the event.
Guangxi serves as a critical gateway for China’s outreach to ASEAN countries, leveraging its geographic proximity and cultural ties to strengthen mutual exchanges. Over recent years, Guangxi has built a reputation for its active role in fostering media collaborations with ASEAN countries, sharing stories of friendship, and facilitating people-to-people and cultural connections between China and its neighbors.
Liu Weiling highlighted China Daily’s collaboration with Guangxi to establish a comprehensive, diversified cooperation model. This model seeks to highlight Guangxi’s strategic significance in the Guangdong-Hong Kong-Macao Greater Bay Area while also showcasing the region’s role in building a China-ASEAN community of shared destiny and a China-Vietnam strategic community.
Yu Yunquan emphasized that Guangxi’s geographical advantages and cultural richness make it uniquely positioned for international communication. He stressed that Guangxi’s role would be instrumental in deepening international cooperation and enhancing mutual understanding, as the region continues to develop its international communication infrastructure.
Zhang Lei from China News Service spoke about the partnership between his organization and Guangxi to amplify the region’s achievements in economic and social development. The goal is to present Guangxi to the international community through accurate and engaging stories that reflect its progress and ambitions in high-quality development.
Akha Ongmenca, Director of Lao National Television, praised the long-standing partnership between Laos and Guangxi in the media sector. He expressed optimism about continuing this cooperation, focusing on innovation and achieving even greater results in the future.
Xu Bo, President of Guangxi Daily, outlined the efforts to establish a multi-dimensional communication platform through “Hello Guangxi,” which includes a website, client channel, and social media accounts. The aim is to create a unified and effective communication network that promotes Guangxi’s image internationally while telling China’s stories from a localized perspective.
At the event, several strategic agreements were signed, including one between the Publicity Department of Guangxi and China Daily and China News Service. These agreements, alongside new collaborations with foreign media, aim to expand Guangxi’s influence on the global stage.
Among the initiatives announced were plans for the 2024 Chinese and Foreign Media Tour, aimed at promoting the Land and Sea New Corridor in the West, a key part of China’s Belt and Road Initiative. This project is seen as critical to the development of China’s southwest region. Additionally, cultural exchange activities like “Meeting Lovely China and Magnificent Guangxi” will further promote mutual learning and cultural ties between China and ASEAN.
The launch of the Guangxi International Communication Centre marks a significant step in promoting China-ASEAN cooperation through media and cultural diplomacy, with a focus on fostering mutual understanding and deepening regional ties.
Turkish President Tayyip Erdogan said on Saturday Islamic countries should form an alliance against what he called “the growing threat of expansionism” from Israel, drawing a rebuke from the Israeli foreign minister.
He made the comment after describing what Palestinian and Turkish officials said was the killing by Israeli troops of a Turkish-American woman taking part in a protest on Friday against settlement expansion in the Israeli-occupied West Bank.
“The only step that will stop Israeli arrogance, Israeli banditry, and Israeli state terrorism is the alliance of Islamic countries,” Erdogan said at an Islamic schools’ association event near Istanbul.
He said recent steps that Turkey has taken to improve ties with Egypt and Syria are aimed at “forming a line of solidarity against the growing threat of expansionism,” which he said also threatened Lebanon and Syria.
Israeli Foreign Minister Israel Katz said in a statement that Erdogan’s remark was “a dangerous lie and incitement,” and that the Turkish leader has been working for years with Iran to undermine the region’s moderate Arab regimes.
Erdogan hosted Egyptian President Abdel Fattah al-Sisi in Ankara this week and they discussed the Gaza war and ways to further repair their long-frozen ties during what was the first such presidential visit in 12 years.
Ties between them started thawing in 2020 when Turkey began diplomatic efforts to ease tensions with estranged regional rivals, including the United Arab Emirates and Saudi Arabia.
Erdogan said in July that Turkey would extend an invitation to Syrian President Bashar al-Assad “any time” for possible talks to restore relations between the two neighbours, who severed ties in 2011 after the outbreak of the Syrian civil war.
Israel’s military said after Friday’s incident that it was looking into reports that a female foreign national “was killed as a result of shots fired in the area. The details of the incident and the circumstances in which she was hit are under review.”
There was no immediate comment on Friday’s incident fromIsraeli Prime Minister Benjamin Netanyahu’s office.
The Japanese owner of 7-Eleven said Friday it had rejected a takeover bid from Canadian retail giant Alimentation Couche-Tard, saying the proposal “grossly undervalues” the company.
The proposed purchase of Seven & i Holdings would be the biggest ever foreign takeover of a Japanese firm and combine 7-Eleven, Circle K and other brands across Asia, North America and Europe.
As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.
Although the brand began in the United States, since 2005 it has been wholly owned by Seven & i.
A letter from the Seven & i board to Alimentation Couche-Tard (ACT) said it was open to “engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value”.
“We do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction,” it said.
ACT operates more than 16,700 outlets in 31 countries and territories.
Its purchase of Seven & i would be the biggest ever foreign takeover of a Japanese firm and create an international convenience store behemoth combining 7-Eleven, Circle K and other brands across Asia, North America and Europe.
Seven & i said ACT had offered $14.86 per share in cash, which roughly matches its market value of $39 billion.
But the board’s letter called the proposal “opportunistically timed” and said it “grossly undervalues our standalone path and the additional actionable avenues we see to realise and unlock shareholder value”.
It also raised regulatory concerns.
“Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from US competition law enforcement agencies,” it said.
A quarter of 7-Eleven stores are found in Japan where they are a beloved institution, selling everything from concert tickets to pet food and fresh rice balls.
Seven & i Holdings’ other businesses include a major supermarket operator, restaurant chain Denny’s, and Tower Records — a once-popular US record store that went bankrupt.
Seven & i has reportedly asked the Japanese government to designate parts of the company as “core”, which would make a takeover more difficult.
Brands with the “core” rating in Japan include manufacturers in the nuclear, space, rare earths and chip industries, as well as cybersecurity and infrastructure operators.
The Canadian firm, however, is confident that it can have its way.
CEO Brian Hannasch told an earnings briefing in New York on Thursday that Couche-Tard could “even consider a higher leverage if needed”, indicating it has the capacity to raise more funds, according to Nikkei Asia.
“We have the solid and robust balance sheet,” Nikkei quoted Hannasch as saying.
Shares in Seven & i were down 1.9 percent in Tokyo on Friday.
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