Global Subsidies Initiative

The report analyzes the complex system of producer subsidies for coal in China, including direct financial support, tax breaks, and preferential financing. It highlights how these subsidies, often provided to state-owned enterprises, create market distortions that hinder the transition to renewable energy and maintain coal overcapacity despite environmental goals.

• China provides extensive producer subsidies to the coal sector through multiple channels, including direct grants, tax incentives, and preferential loans, which distort market prices and encourage overproduction.
• State-owned enterprises (SOEs) are primary beneficiaries of government support, receiving significant preferential financing and bailouts to maintain operations during periods of low coal prices.
• The document identifies specific subsidy mechanisms such as coalbed methane exploration subsidies and resource tax reforms intended to ease the burden on producers.
• Government support for coal production creates a competitive disadvantage for renewable energy sources by artificially lowering the cost of coal-fired power generation.
• Despite national goals to reduce carbon emissions and transition to cleaner energy, the persistence of coal subsidies contributes to continued overcapacity in the coal industry.

APA

Bridle, R., Gerasimchuk, I., & Attwood, C. (2016). Global Subsidies Initiative. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/subsidies-coal-production-in-china-ch.pdf

Chicago

Bridle, Richard, Ivetta Gerasimchuk, and Clement Attwood. Global Subsidies Initiative. International Institute for Sustainable Development, 2016. https://www.iisd.org/system/files/publications/subsidies-coal-production-in-china-ch.pdf.

Wikipedia

{{cite report |last1=Bridle |first1=Richard |last2=Gerasimchuk |first2=Ivetta |last3=Attwood |first3=Clement |title=Global Subsidies Initiative |publisher=International Institute for Sustainable Development |date=2016 |url=https://www.iisd.org/system/files/publications/subsidies-coal-production-in-china-ch.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bridle2016global, author = {Bridle, Richard and Gerasimchuk, Ivetta and Attwood, Clement}, title = {{Global Subsidies Initiative}}, institution = {International Institute for Sustainable Development}, year = {2016}, url = {https://www.iisd.org/system/files/publications/subsidies-coal-production-in-china-ch.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }