China chokes on its coal addiction

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By Leith van Onselen

The Washington Post has an interesting article showing the huge growth of coal consumption in China, which has grown so much that China is now burning nearly as much coal as the rest of the world combined (see next chart).

While the growth in Chinese coal use is a boon for Australia’s coal exporters in Queensland and New South Wales, it is presenting a problem for global greenhouse gas emissions, which have soared in recent years despite the reduction of coal use (and carbon emissions) in the United States and Europe.

The increased coal consumption in China is also causing major pollution problems domestically. Over the past two weeks, pollution levels in Beijing have reportedly measured 40 times recommended safe levels, according to The Atlantic. This has prompted China’s authorities to undertake short-term mitigation measures, such as shutting down some factories and limiting auto usage.

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Some of the pictures coming out of China are breathtaking (to coin a phrase). Check out the below photos via Caixin Online:

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And these pictures from The Atlantic (click to see full album):

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Perhaps little wonder, then, why so many wealthy Chinese are looking to emigrate to greener pastures in Australia, New Zealand, Canada, and the US (among other places).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.