The next three years will see China cut coal consumption and double down on outdated steel and coke capacity as the country continues its fight against pollution, Reuters reported July 3.
As part of its initiative to reach its smog targets in 2017, China tightened traffic and coal use and imposed blanket restrictions on certain industries, including steel, throughout 28 northern cities from October 2017 to March 2018, the report said.
On July 3, the state council released an action plan for 2018-2020 that includes 82 cities across China and identified coal-producing provinces Shanxi and Shaanxi as two of the key regions for pollution control, Reuters said.
Among other things, the plan requires the regions of Beijing, Tianjin, Hebei, Shandong and Henan to cut coal use by 10% through 2020, while the Yangtze delta region will have to cut coal use by 5%, Reuters reported, and no new capacity for steel, coke and primary aluminum production will be permitted in those regions.
Hebei's steel capacity will be capped at 200 million tonnes by 2020, a 30% drop from the 286 million tonnes in 2013, the report said. The province is the largest manufacturer of steel in the country.