Policy measures are being strengthened to promote the clean and efficient use of coal.

The “Suggestions of the CPC Central Committee on Formulating the 15th Five-Year Plan for National Economic and Social Development,” adopted at the Fourth Plenary Session of the 20th CPC Central Committee, calls for accelerating the comprehensive transformation of economic and social development, expediting the construction of a new‑type energy system, strengthening the clean and efficient utilization of fossil fuels, and advancing the upgrading and transformation of coal‑fired power generation while phasing out the use of loose coal. This provides the fundamental guiding principles for the clean and efficient utilization of coal.

At present, China is accelerating the promotion of clean and efficient coal utilization, with policy support continuously being strengthened. Recently, six departments, including the National Development and Reform Commission and the Ministry of Industry and Information Technology, jointly issued the “Benchmark and Baseline Levels for Key Areas of Clean and Efficient Coal Utilization (2025 Edition),” which clarifies the scope and specific indicators for these benchmarks and baselines. Furthermore, measures will be stepped up to enhance market‑driven regulation and ensure effective implementation of clean and efficient coal utilization through financial incentives, preferential policies, and other supportive mechanisms.

This is a concrete measure to propel the coal industry from low-end to high-end and to upgrade coal products from primary fuels to high-value commodities. In September 2024, the National Development and Reform Commission and five other departments issued the “Opinions on Strengthening the Clean and Efficient Use of Coal,” calling for comprehensive efforts to enhance clean and efficient coal utilization across the entire value chain. By 2030, energy efficiency and cleanliness in key sectors are expected to see all-round improvements, and a basic framework for clean and efficient coal utilization will be in place. Notably, regularly updating benchmark and baseline standards for key areas of clean and efficient coal use is one of the central components of this initiative.

Clean and efficient coal utilization refers to activities that, across the entire coal industry chain—from exploration and production to storage, transportation, and end-use—integrate advanced technologies and management practices to control and reduce pollutant emissions and carbon output, thereby enhancing coal‑use efficiency. As an inevitable choice for high-quality development, clean and efficient coal utilization is of great significance for fully leveraging coal’s role as a reliable safety net, advancing the green and low‑carbon energy transition, and fostering new‑type productive forces.

The clean and efficient utilization of coal is both a response to the prevailing circumstances and a necessity in its own right. As China’s energy mix undergoes adjustment and optimization, coal’s share in primary energy consumption has been steadily declining, while the integrated development of coal and new energy sources is accelerating. Building a new‑type energy system requires continuously increasing the proportion of new‑energy supply and advancing the safe, reliable, and orderly replacement of fossil fuels. As a vital foundational energy source and industrial raw material, coal not only serves as a “ballast” and a “stabilizer” for ensuring energy security, but also plays an irreplaceable role in emerging sectors such as metallurgy, chemical engineering, anode materials, and carbon fiber.

In 2022, the National Development and Reform Commission and other authorities issued the “Benchmark and Baseline Levels for Key Areas of Clean and Efficient Coal Utilization (2022 Edition),” which, by setting clear benchmark and baseline standards for energy efficiency and pollutant emissions, aims to promote energy conservation, pollution reduction, and carbon emission cuts across key sectors such as coal washing and beneficiation, coal-fired power generation, coal‑fired boiler heating, and coal conversion. In recent years, relevant stakeholders have actively advanced improvements in energy efficiency and environmental emission controls in these priority areas, with notable progress made in upgrading coal‑fired power units to enhance energy efficiency and reduce carbon emissions. As a result, the share of coal in total energy consumption has declined from 56.7% in 2020 to 53.2% in 2024.

As an important approach to achieving clean and efficient coal utilization, the transformation of coal into raw materials and resources aims to establish a diversified, high‑efficiency coal‑use system and to build a low‑carbon, circular industrial chain for the efficient conversion of coal. The recently released benchmark and baseline levels for key areas of clean and efficient coal utilization further expand the scope of these priority sectors. Building on the existing focus areas, the new framework not only supplements and refines requirements for indicators such as coal consumption in thermal power generation and heat supply, but also adds two major new areas—coal‑to‑natural gas and coal‑to‑liquids—thereby helping to better standardize the full‑chain, clean and efficient use of coal.

Promoting the clean and efficient utilization of coal, while strengthening the guiding role of benchmark levels and the regulatory function of baseline levels, is crucial. The benchmark and baseline levels for key areas of clean and efficient coal utilization recently released have been calibrated against relevant policies, indicators, and requirements. Specifically, the benchmark values for coal washing and beneficiation, coal-fired power generation, coal-to-methanol, and coal-to-ethylene glycol have been raised, and the baseline levels—such as the coal consumption per unit of electricity generated in coal-fired power plants—have been optimized, providing a scientifically sound framework for evaluating projects aimed at achieving clean and efficient coal use. By implementing upgrades and retrofits in accordance with these updated benchmark and baseline levels, coal‑based projects will not only enhance their level of clean and efficient utilization but also help reduce carbon emissions, facilitate the industry’s transition to green and low‑carbon operations, and contribute to the goals of peaking carbon emissions and achieving carbon neutrality.

The policy aims to encourage and guide relevant enterprises to undertake project upgrades and transformations in line with their specific circumstances and long-term development goals, thereby achieving the targeted performance indicators. For new coal development and utilization projects, as well as eligible existing projects, efforts should be made to maximize the level of clean and efficient utilization, striving to reach benchmark standards. For existing projects whose clean and efficient utilization falls short of current baseline levels, enterprises will be guided to carry out orderly upgrades toward cleaner and more efficient coal use, accelerating pollution reduction and carbon emission cuts, while resolutely phasing out outdated production capacity and obsolete technologies in accordance with laws and regulations. These measures underscore the policy’s stringent requirements. In addition to mandating that local authorities specify deadlines for upgrading and decommissioning, along with annual implementation plans, eligible existing projects are also brought under the “striving to reach benchmark levels” framework. Furthermore, a project evaluation system for clean and efficient coal utilization is being implemented to ensure that upgrade initiatives are completed on schedule, commissioned promptly, and deliver expected results in a timely manner.

It is worth noting that the implementation of this update to benchmark and baseline levels will make full use of existing policy tools and working mechanisms, actively support key projects for the clean and efficient utilization of coal that meet the criteria, encourage and attract broad participation from social capital in such initiatives, and guide financial institutions to increase credit support for eligible green and low-carbon transformation projects.

Undoubtedly, as various policies are implemented and synergize, the overall level of clean and efficient coal utilization will continue to improve, thereby advancing the clean and efficient use of coal across the entire value chain and supporting the development of a new energy system that is green, low-carbon, safe, and highly efficient. Under the guidance of clean and efficient coal utilization, the coal industry will not only ensure energy security but also leverage its own transformation to achieve higher‑quality growth.