Business News Asia
China tells mining companies in Inner Mongolia to increase coal production. Meanwhile, oil and gas prices continue to rise. The lack of coal and rising oil and gas prices are causing power outages in factories and homes.
Economic recovery from COVID-19 virus slows due to lack of fossil fuels, plus countries struggle with the onset of winter in the northern hemisphere.
Energy crises that could lead to fuel shortages and power outages in some countries highlight how difficult it is right now to reduce the world economy’s dependence on fossil fuels. Representatives of countries want to further intensify the issue of climate change at the UN Climate Summit.
In China, where coal production has been curbed to meet climate targets, more than 70 coal mines in Mongolia are now expected to increase production by nearly 100 million tons, or 10%. The world’s largest exporter is struggling with its biggest energy shortage in years.
China will allow coal-fired power prices to deviate by up to 20% from the base level, instead of the current 10-15%, to prevent high power consumption.
India is the second largest coal consumer after China and has also had a problem with power outages. This was revealed by data from the state-owned grid operator. The reason is a shortage of coal in more than half of the coal-fired power plants with less than three days of fuel supply.
Oil prices are expected to rise significantly by the end of the year, which could further aggravate the situation.
Rising energy prices have created tensions in Europe as opinions are divided over the green transition In the EU. Richer countries want to keep up the pressure to phase out fossil fuels. Poorer countries, on the other hand, are concerned about the cost to consumers.