Subsidies to Coal Power Generation in China

The report identifies 14 subsidy schemes for coal-fired power in China, quantifying the total value at CNY 252.4 billion (USD 37.7 billion) in 2014 and CNY 120.8 billion (USD 18 billion) in 2015. Key support mechanisms include power purchase guarantees, premiums for low-emission plants, and infrastructure investments in rail and grids. The authors argue that these subsidies provide coal an advantage over renewables and should be integrated into G20 fossil fuel subsidy review processes.

• The total value of quantifiable subsidies to coal-fired generation in China decreased significantly from 2014 to 2015, falling from CNY 252.4 billion (USD 37.7 billion) to CNY 120.8 billion (USD 18 billion).
• Government support for coal-fired generation is approximately double the level of subsidies provided to renewable energy, which range from CNY 45 billion to 103 billion (USD 6.7 billion to 15.4 billion) per year.
• Power purchase guarantees and premium rates for low-emission plants represent one of the largest subsidy impacts, valued at CNY 94 billion in 2014 and CNY 106.9 billion in 2015.
• The Chinese government provides an 'environmental protection premium' for units with emissions abatement equipment, adding CNY 0.015, 0.01, and 0.002 per kWh for equipment reducing sulphur dioxide, nitrogen oxide, and particulates respectively.
• Coal generators benefit from priority dispatch over renewables; the value of electricity curtailed from the renewable sector but delivered via coal is estimated at CNY 6.88 billion for 2015 as an upper bound.
• Subsidies for investment in emissions abatement equipment were high in 2014 at CNY 130 billion but dropped to CNY 0.2 billion in 2015.
• The report identifies 'zombie companies'—those making losses for three consecutive years—as barriers to coal phase-out, though the specific subsidies propping them up could not be quantified.
• Infrastructure investment in rail and the power grid provides a direct advantage to coal generators, with public investment in coal-related rail infrastructure estimated at CNY 281 billion.
• China provides financial support for outward investment in coal projects via SOEs, including preferential export credits and loans, such as USD 1.5 billion in loans and guarantees for a plant in the China Pakistan Economic Corridor in 2015.
• The report notes that coal-fired generation subsidies were not included in China's 2016 voluntary G20 peer review of fossil fuel subsidies.

APA

Denjean, B., Su, T., Attwood, C., Bridle, R., Duan, H., & Gerasimchuk, I. (2016). Subsidies to Coal Power Generation in China. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/subsidies-coal-power-generation-china.pdf

Chicago

Denjean, Benjamin, Ting Su, Clement Attwood, Richard Bridle, Hongxia Duan, and Ivetta Gerasimchuk. Subsidies to Coal Power Generation in China. International Institute for Sustainable Development, 2016. https://www.iisd.org/system/files/publications/subsidies-coal-power-generation-china.pdf.

Wikipedia

{{cite report |last1=Denjean |first1=Benjamin |last2=Su |first2=Ting |last3=Attwood |first3=Clement |last4=Bridle |first4=Richard |last5=Duan |first5=Hongxia |last6=Gerasimchuk |first6=Ivetta |title=Subsidies to Coal Power Generation in China |publisher=International Institute for Sustainable Development |date=November 2016 |url=https://www.iisd.org/system/files/publications/subsidies-coal-power-generation-china.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{denjean2016subsidies, author = {Denjean, Benjamin and Su, Ting and Attwood, Clement and Bridle, Richard and Duan, Hongxia and Gerasimchuk, Ivetta}, title = {{Subsidies to Coal Power Generation in China}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = nov, url = {https://www.iisd.org/system/files/publications/subsidies-coal-power-generation-china.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }