The data, released by China’s National Bureau of Statistics this week, show that the fall in the nation’s coal consumption and CO2 emissions continued for a second year in a row in 2015. The 3.7 per cent percent decline in coal consumption was equal to Japan’s total coal consumption for the same period. [1] China accounts for around half of the world’s demand for coal. Australian thermal coal exports to China were down 28.5 per cent in 2015. [2]
“These numbers are yet another nail in coal’s coffin. It’s no longer economically or environmentally sensible for the government to prop up the Australian thermal coal industry,” said Nikola Casule, Greenpeace Australia Pacific’s climate and energy campaigner.
“The market for coal is shrinking, the price of coal has plummeted and Australia has to fulfil its commitment from the Paris climate talks to limit global warming to 1.5C, which requires keeping coal in the ground.
“Yet Australian taxpayers are subsidising an industry that is in structural decline and they are not getting a good deal for the billions of dollars that are being spent. The longer Australia is in this game, the more Australia is going to lose – in jobs, in taxpayer money and in its international reputation,” said Dr Casule.
The drop in China’s coal consumption follows news that the Mount Arthur coal mine, the largest thermal coal export mine in the Hunter Valley, has been declared at risk of closure. The mine, operated by BHP Billiton, is struggling to turn a profit since coal prices have plummeted. [3] Anglo American also recently announced it was selling all of its Australian coal mines after posting a $5.6bn loss. [4]
“Australia can’t keep throwing good money after bad on this dying industry. We need to invest in life after coal. We need new jobs and new training opportunities for miners so that people can still work after the last mine has fired its workers and closed down,” said Dr Casule.