A 'Great Reversal' in China? Coal continues to decline with enforcement of environmental laws

Two headline stories dominate discussion of China's energy trajectory right now. The first is that reports from three agencies all point to the continuing decline in use of coal in the first half of 2015, continuing a trajectory already notable in 2014. These are not declines in the rate of growth, but absolute declines in the amount of coal consumed in power generation as well as in energy-intensive industries like steel and cement production. This points to the possibility that coal consumption may be peaking much earlier than anticipated in official government statements – and so pointing to an early peaking of carbon emissions. If continued, this would be a 'Great Reversal' of China's recent dominant role in consumption of dirty fossil fuels and production of greenhouse gases.