Carbon Tracker satellite analysis shows 40% of Chinese coal fleet is cash-flow negative in 2018

This is due to to high fuel costs (capacity weighted average of $85/t). 95% of the coal fleet will be cash-flow negative by 2040, due to carbon pricing & air pollution regulation, Carbon Tracker further estimates.

The results suggest it will be cheaper for China to build new onshore wind than operate coal by 2021, & solar PV by 2025. And Chinese coal power owners can avoid losing $390 bn by retiring the operating fleet in a manner consistent with the Paris Agreement.

This rather begs the question if “if so obvious, why are building new plants?”. Here I suppose the answer lies in the remit of neuroscientists: the Chinese – like the Brits, Americans and others – have diehards of the fossil-fuel establishment who are determined to die hard rather than betray their belief systems in the face of inconvenient economic facts.

Anyway, another grounder-breaking report by the team at Carbon Tracker.

Images: from report

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