China: The Great Coal Cap

The Great Coal Cap: China's energy policies and the financial implications for thermal coal Drivers Peaking China's Thermal Coal Demand Total Energy Consumption Cap Reducing Energy Intensity Total Power Demand Slowing GDP Growth Nuclear Power Renewable Energy Natural & Shale Gas Non-Coal Power Demand Air Pollution Regulations Water Scarcity Regulations Cap & Trade Pilots Carbon Tax Potential Thermal Coal Demand Year O driver of lower demand O driver of higher demand When will thermal coal demand peak? Exposure of China's Stock Exchanges to Thermal Coal (Bt) China's Total Coal Assets (Bt) TOTAL THERMAL Hong Kong Reserves Reserves Resources Resources Shanghai Shenshen 1.1 91.6 28.6 0.8 5.6 46.6 147.1 22.8 12.7 70.1 Coal capital expenditure by stock exchange (CNY bn) China Shenhua Energy Co China Coal Energy Company Ltd 20% 49% Zhengzhou Coal Industry & Electric Power Co Ltd Datong Coal Mine Group Co Ltd 10% 4% Yangquan Coal 7% Industry Group Co Ltd 2.3 CNY bn 31% 14% Datang International Power Generation Co Ltd Shanxi Coal International Shanxi Xishan Coal Energy Group 33%, & Electricity 55% Yanzhou Coal Mining Co Ltd 67% $4 Jizhong Energy Resources Co Ltd 105.3bn 18.5bn 5.1bn Hong Kong Shanghai Shenzhen Carbon Trackar OCarbon Tracker 2014 Designer: Margherita Gagliardi Source: Carbon Tracker Initiative report "The Great Coal Cap: China's energy policies and the financial implications for themal coal" Totaldemand