Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Caixin Global
Caixin Global
Business

PBOC Backs Coal Industry With $15 Billion of Credit

What’s new: China’s central bank will provide 100 billion yuan ($15 billion) of credit lines to support coal development and storage as the country seeks to secure its energy supply, the People’s Bank of China said Wednesday.

The credit lines will be issued through relending facilities to enhance safe coal production and reserves, including modern coal mine construction, green and efficient technology application, intelligent mine construction and secured supply to coal-fired power plants, the People’s Bank of China (PBOC) said.

The funding support is to address the “greater uncertainty and challenges" facing China's energy security and stable economic operation amid a complex global situation and highly volatile international energy prices, an official at the central bank said.

The context: Coal has remained the top priority for China’s energy security as the fossil fuel generates about 60% of electricity nationwide, even though the country has set ambitious goals for renewable energy development to reduce carbon emissions and counter global warming.

Last month, the State Council laid out a plan to add 300 million tons of coal production capacity this year, reflecting policymakers’ concerns over energy security after last year’s nationwide power crunch.

The cabinet in November instructed the central bank to set up 200 billion yuan of special relending facilities to support coal development, among other sectors.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)

Get our weekly free Must-Read newsletter.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.