China aims to reduce the average consumption of coal used to generate electricity in power plants in order to improve energy efficiency and reduce greenhouse gas emissions.

According to China's National Development and Reform Commission (NDRC), coal-fired power plants must adjust their consumption rate to an average of 300 grams per kilowatt-hour (kWh) by 2025.

For the commission this goal of promoting a reduction in coal use "is an effective means of improving energy efficiency and is of great importance in achieving peak carbon emissions in the energy industry."

Carbon dioxide (CO2) emissions from the power generation and heating sector account for about 40% of China's total CO2 emissions. In 2020, the average use of coal in power generation was 305.5 grams per kWh, up from 370 grams per kWh in 2005.

The NDRC has asked new power plant projects to use coal at an average rate of less than 270 grams per kWh. While new water cooling units that use more than 285 grams per kWh and air cooling units greater than 300 grams per kWh will not be allowed to use coal.

On the other hand, power plants that fail to reach an average utilization rate of 300 kWh will be subject to a gradual shutdown.

China also plans to complete flexibility adjustments to 200 gigawatts of coal-fired power capacity in 2021-2025. This would allow coal-fired plants to be transformed into backup power sources from the currently dominant fuel source and would boost renewable energy consumption.

"Reducing coal use helped reduce 6.67 billion tons of CO2 emissions from the power sector in 2006-2020, or 36% of the total emissions reduction in industry," according to the NDRC.