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. The report by the Australian Institute of Company Directors (AICD) said that while there was a need for more coal in Australia, existing plants were not being built fast enough. 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.