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Coal dominates China’s energy consumption and causes significant air pollution and carbon emissions. By examining recent policy imperatives of coal sector restructuring, this article unpacks the contradictory policy goals on cutting coal production capacity and mitigating climate change, as well as the challenges to reducing coal consumption. These challenges largely result from the regulatory framework governing China’s electricity sector, which lacks effective mechanisms to reduce coal consumption. By doing so, this article aims to shed some light on the role state-owned enterprises play in the coal sector, or the role they could play, towards climate change mitigation.

China’s ownership policies in the coal sector: effectiveness of capacity regulation and prospect for climate change mitigation