Nearly three-quarters of China’s total electricity generation comes from fossil fuels. Cutting down on coal is a key pillar of Beijing’s climate change promises. It now faces a dilemma over its priorities.
China has ordered coal miners to boost production urgently as an energy shortage threatens factories and pushes consumer prices higher.
There is good reason. Power shortages in China threaten a popular backlash against the government. More than 20 provinces, mostly where manufacturing is centred, have implemented power cuts. That affects production of everything from iPhones to Toyota cars and toys. And it results in factory closures. Producer inflation is soaring, up nearly a tenth in August.
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