Good voices for coal at the National Peoples Congress

China is a major coal producer and consumer. Its national conditions are characterized by abundant coal, poor oil, and limited natural gas. Fundamental changes to its coal-based energy structure are unlikely in the short term. Especially in the context of achieving the "dual carbon" goals, how the coal industry can achieve high-quality development has become a hot topic among delegates and members of the Two Sessions. This reporter has reviewed some of the positive voices regarding coal that emerged from this year's Two Sessions.

Achieving the "dual carbon" goals and ensuring a bottom-line supply

Achieving the "dual carbon" goals is an inherent requirement for promoting high-quality development and must be pursued unwaveringly. However, based on reality, my country's coal industry faces immense pressure to reduce emissions. Delegates and members offered opinions and suggestions on how to manage the relationship between the two.

National People's Congress deputy Dong Lin believes that coal plays a fundamental and bottom-line role in my country's energy system, and that upstream and downstream coal industries are crucial components of the national economy. Since 2021, influenced by a variety of factors, including shifts in the international energy supply and demand landscape and a steady economic recovery, the domestic coal supply and demand landscape has undergone profound adjustments. Especially since the third quarter of last year, the coal supply and demand relationship has gradually shifted toward a structural shortage. Medium- and long-term coal contract prices have steadily increased, while spot coal prices have surged, resulting in market conditions such as "coal frenzy" and "beyond expectations." Relevant departments have stepped up efforts to ensure energy supply and price stability, and the coal economy is stabilizing. Practice has proven that excessively high or low coal prices can negatively impact the stable and healthy development of upstream and downstream coal industries and the secure and stable supply of energy in my country. Therefore, establishing a long-term, win-win mechanism for cooperation between upstream and downstream coal industries and stabilizing coal prices within a reasonable range are crucial for implementing the spirit of the Central Economic Work Conference, ensuring a secure and stable energy supply, and promoting high-quality development of upstream and downstream coal industries.

Pan Biling, a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference, stated that due to the instability and cyclical nature of existing clean energy sources, there are still many obstacles to making clean energy a primary energy source in my country in the short term. Furthermore, my country's coal resource endowment dictates that coal is the primary energy source for energy security. In recent years, my country has continuously optimized and adjusted its energy structure. Although the proportion of coal in primary energy consumption has been declining year by year, my country's coal-dominated energy structure will not undergo fundamental changes in the foreseeable future.

Cao Peixi, a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference, stated that recent voices that blindly criticize or even "demonize" coal-fired power, regardless of national conditions and development stage, as well as the "campaign-style" carbon reduction measures adopted by some regions, have had a negative impact on the sustainable and healthy development of the coal-fired power industry. During the 14th Five-Year Plan period and beyond, coal-fired power will continue to play an irreplaceable role in energy security and green and low-carbon transformation. Optimizing the coal-fired power business environment is of great significance to maintaining national energy security. Coal-fired power will continue to play an irreplaceable role in supporting the safe and stable operation of the power system, serving the large-scale development of renewable energy, and contributing to the achievement of carbon peak and carbon neutrality goals.

Taking the Path of Green and Low-Carbon Transformation

Currently, the coal industry faces a series of challenges in achieving a green and low-carbon transformation, but also presents rare development opportunities. What are the future developments and transformation strategies? Representatives and members offered these insights during the Two Sessions.

National People's Congress deputy Li Dongyan suggested that the country prioritize comprehensive legislation and expedite the promulgation of the "Energy Law of the People's Republic of China." At the same time, relevant laws should be revised to strengthen coordination and alignment between laws and regulations, thereby enhancing their relevance and effectiveness.

National People's Congress deputy Yuan Liang suggested incorporating "dual carbon" technologies in the coal industry into the "14th Five-Year Plan for Scientific and Technological Innovation in the Energy Sector," making them key innovation tasks within the 14th Five-Year Plan. Support should be increased to provide innovative support for the industry's low-carbon transition.

National People's Congress deputy Sun Jianbo suggested deepening the complementary development of coal-fired power and new energy in the "dual carbon era." Support should be increased for low-carbon retrofits of coal-fired units and for the coupled development of coal-fired units with new energy power generation. Based on the supply and peak-shaving capabilities of coal-fired power companies, new energy resources should be rationally allocated. Through horizontal multi-energy complementarity and vertical grid-source-load-storage coordination, coal-fired power companies should be orderly transformed into integrated energy companies and developed upstream of ultra-high voltage transmission lines. Furthermore, macroeconomic regulation of the coal market should be strengthened, coal production capacity should be optimized, safe, efficient, green, and intelligent coal mining should be supported, the release of advanced production capacity should be accelerated, and coal prices should be brought back to reasonable levels.

Jiang Yaodong, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), called for further strengthening my country's coal production safety capacity, focusing on building a large number of intelligent coal mines and large-scale open-pit coal mines, continuing to eliminate outdated production capacity, and forming a production structure dominated by large-scale intelligent coal mines. He also called for improving China's flexible coal production and supply capabilities, supported by intelligent technology, and intensifying research on intelligent and green mining technologies. He also urged the government to vigorously promote the shift from using coal primarily as a fuel to developing both fuel and raw materials, extending the coal chemical industry chain. Furthermore, he called for strengthening the coordinated management of coal-related policies and synergizing efforts.

Feng Yidong, a member of the National Committee of the CPPCC, believes that accelerating the use of clean coal is crucial for my country to achieve its dual carbon goals on schedule. He suggested establishing a clean coal standards system and establishing a national clean coal standardization technical committee to ensure that clean coal has corresponding quality standards for various uses, such as industrial, power generation, and residential use. Furthermore, he suggested strengthening source control of coal production enterprises, establishing clean coal purchasing and sales platforms at different levels, and ensuring the quality of clean coal products throughout the circulation process. Furthermore, he called for increasing subsidies for clean coal production enterprises and leveraging the central bank's carbon emission reduction support tools and special re-lending policies to support clean and efficient coal utilization to improve the overall supply of clean coal.

Promoting the R&D and Innovation of Related Technologies

The Party Central Committee and the State Council attach great importance to the clean and efficient use of coal. The Central Economic Work Conference emphasized the need to prioritize China's coal-based economy, prioritize clean and efficient coal utilization, increase the capacity to absorb new energy, and promote an optimized combination of coal and new energy.

National People's Congress deputy Jia Runan suggested promoting the high-end, diversified, and low-carbon development of coal chemical industry. Regarding "high-end development," efforts should be made to accelerate the research and development of key core technologies, develop projects extending the coal-based new materials industry chain, and produce high-value-added products such as coal-based new materials and coal-based specialty fuels. Regarding "diversification," efforts should be made to accelerate the transition from single oil and polyolefin products to a diversified product portfolio encompassing "oil, chemicals, and new materials," actively developing coal-based biodegradable materials and high-grade carbon materials. Regarding "low-carbon development," new energy sources such as green electricity and green hydrogen should be coupled with modern coal chemical industry development to explore pathways for large-scale carbon dioxide capture, storage, and comprehensive utilization.

National People's Congress deputy Lü Chunxiang believes that strengthening technological research on the clean and efficient use of coal is the primary and practical approach to addressing my country's energy security. In recent years, my country has launched a number of research projects on clean and efficient coal utilization technologies, achieving significant results. However, overall technological strength and level still lag behind the current national requirements for comprehensive coal utilization. It is recommended to continuously strengthen research on clean and efficient coal utilization technologies, systematically carry out scientific and technological breakthroughs, and promote progress in technologies such as efficient coal combustion for power generation, next-generation coal-to-liquids technologies, new coal chemical product structure control technologies, energy and chemical process reengineering and system integration across different industries, clean coal combustion technologies, effective utilization of low-concentration gas (lack of air), and biological and chemical carbon sequestration technologies. These technologies will make fundamental and strategic contributions to achieving the "dual carbon" goals and provide support for energy security.

Pan Biling, a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference, stated that as the carbon market matures, traditional companies that consume large amounts of fossil energy will be increasingly disadvantaged in market competition. As new energy technologies continue to mature and development costs continue to decrease, companies need to continuously enhance their competitiveness, innovate production technologies and processes, and reduce energy use and carbon emissions costs.

Jiang Yaodong, a member of the National Committee of the Chinese People's Political Consultative Conference, suggested increasing efforts to research key technologies for clean and efficient coal utilization and commercialize research results. Encourage research into the basic theories and key technologies for clean and efficient coal utilization. Include key technology research projects in the National Science and Technology Support Plan, key energy innovation areas, and key innovation directions. Promote the construction of demonstration projects for clean and efficient coal utilization, and increase investment in scientific research.

Orderly Promote Intelligent Mine Construction

Intelligent mine construction is the only way for the coal industry to achieve transformation and upgrading and is an irresistible trend.

National People's Congress Deputy Man Shengang stated that the rapid development of information technology and the accelerated application of intelligent equipment provide mining companies with rare opportunities and strong support for optimizing production organization, strengthening management and control capabilities, and promoting safe production. He suggested accelerating the research and formulation of industry standards and steadily and orderly promoting intelligent mining companies' construction. He also suggested introducing a high-value "policy package" to foster a multi-stakeholder investment structure. He also suggested improving and enhancing more preferential financial and tax support policies, such as tax exemptions, low-interest loans, and interest subsidies, to encourage companies to increase investment, attract active participation from high-tech companies in information and communications, software development, and other fields, and leverage follow-up investment from private capital. Establishing "seed" funds and special funds for intelligent construction will play a significant role in easing the burden of intelligent construction for enterprises.

National People's Congress deputy Wei Zhen stated that during his research, he found that despite the National Development and Reform Commission and eight other departments issuing the "Guiding Opinions on Accelerating the Development of Intelligent Coal Mines," as well as the publication of a list of demonstration coal mines and trial acceptance management measures, standards for intelligent construction and acceptance in various regions remain too low. To further promote intelligent construction, Wei Zhen suggested that relevant departments should accurately define the substantive meaning of intelligent construction and adjust the relevant indicators in the existing acceptance management measures. Scientifically formulate indicators for intelligent construction, focusing on unmanned or reduced-manpower operations in all production links. Industry management departments should encourage and supervise coal mines to strive for true full-scale intelligent construction, rather than limited demonstrations or acceptance for the sake of acceptance. (China Mining News)