China could waste 490bn490bn building unnecessary new coal-fired power stations because it already has enough facilities and an overcapacity crisis, says the Carbon Tracker Initiative. However, the Beijing government is reluctant to stop financing unviable state-owned plants due to the risk of widespread unemployment and the potential for increasing levels of civil unrest, leading the CTI to state; “This misallocation of capital is a microcosm of wider structural woes within the Chinese economy.” In July, Greenpeace estimated China had "up to 300GW of excess coal-fired capacity" yet 10 provinces continued to add two coal power plant projects a week.
China could waste up to $490bn building unnecessary new coal-fired power stations because it already has enough facilities and an overcapacity crisis, says the Carbon Tracker Initiative. However, the Beijing government is reluctant to stop financing unviable state-owned plants due to the risk of widespread unemployment and the potential for increasing levels of civil unrest, leading the CTI to state; “This misallocation of capital is a microcosm of wider structural woes within the Chinese economy.” In July, Greenpeace estimated China had "up to 300GW of excess coal-fired capacity" yet 10 provinces continued to add two coal power plant projects a week.