Australian Ethical portfolio manager, international equities, Nathan Lim said the National Development and Reform Commission (NDRC) in China has banned the import of coal with high ash and sulphur content to curb air pollution.
“This development will be particularly challenging for Australian coal exporters as the new coal quality standard will impact between 50 to 80 per cent of current exports,” said Mr Lim.
“These exports will either need to find a new market or be further processed, incurring more costs, to remain eligible for the Chinese market.”
The NDRC also plans to reduce the coal portion of the country’s energy mix from 70 per cent to less than 65 per cent by 2017, said Mr Lim.
China aims to have 100 gigawatts of solar and 200 gigawatts of wind capacity by 2020, he added.
“At the UN Climate Summit, China for the first time said it needs to see a peak in its carbon emission, which confirms its commitment to reduce its carbon intensity and emissions,” said Mr Lim.
“However, it maintained the more contentious position that the world, in regards to their climate obligations, be segmented by developed and developing status.”
