PBOC backs coal industry with $15 billion in credit

What’s new: China’s central bank will provide 100 billion yuan ($15 billion) in credit lines to support coal development and storage as the country seeks to secure its energy supply, the People’s Bank of China said Thursday.

The lines of credit will be issued through loan facilities to enhance safe coal production and reserves, including construction of modern coal mines, application of green and efficient technologies, construction of smart mines and the secure supply of coal-fired power plants, the People’s Bank of China (PBOC) mentioned.

The financial support is aimed at addressing “increased uncertainty and challenges” facing China’s energy security and stable economic functioning amid a complex global environment and highly volatile international energy prices, a source said. central bank manager.

The context: Coal remained the top priority for China’s energy security, as fossil fuel generates around 60% of electricity nationwide, even as the country has set ambitious renewable energy development targets for reduce carbon emissions and fight global warming.

Last month, the Council of State presented a plan to add 300 million tons of coal-generating capacity this year, reflecting policymakers’ concerns about energy security after last year’s national energy crisis.

In November, the cabinet instructed the central bank to set up 200 billion yuan of special lending facilities to support the development of coal, among other sectors.

Quick Takes are condensed versions of China-related stories for quick news that you can use.

Contact reporter Han Wei ([email protected]) and editor Bob Simonon ([email protected])

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