June 26, 2013
Translated by Zhu Na

Hebei Province is set to announce new measures aimed at reducing air pollution in the region that encircles the Chinese capital, according to a report in today's Beijing News.

In a bid to reduce emissions, by 2017, the provincial environmental department plans to introduce measures that will reduce coal consumption by 40 million tonnes on the amount used in 2012.

The Beijing News cited a source from the China Iron and Steel Association (CISA) as saying that the plan is to be formally announced soon.

In mid-June the State Council officially announced 10 new measures to fight air pollution in urban areas across the country, including a target to reduce emissions from heavily polluting industries by 30 percent by the end of 2017.

According to a recent report by Greenpeace, Hebei consumed 307 million tons of coal in 2011, 80 percent of total coal consumption in the capital region, which also includes Beijing and Tianjin.

The recent bout of heavy air pollution endured by cities in the north of the country have also pushed Beijing and Tianjin to speed up efforts to reduce coal consumption.

Tianjin, a port city 120 kilometers east of Beijing, has already brought forward plans to construct 5 new gas-fueled power plants. Beijing plans to close all its remaining coal-fired power stations and replace them with gas by the end of this year.

On June 19, the Ministry of Environmental Protection released a regular report on air quality in 74 cities across the country. Hebei was home to six of the ten most polluted cities on the list.

Steel Industry Shake Up

Hebei produces a lot of steel, building materials and petrochemicals, resulting in heavy air pollution.
 
The focus of the new plan is to put limits on coal consumption so that the amount of coal used in 2017 will be 40 million tonnes less than consumed in 2012.

Zhang Lin (张琳), a steel analyst, told the Beijing News that steel is the primary pillar industry for Hebei and that the sector will be a key area for air pollution control in future.

Some are worried that an over-ambitious target for coal consumption could lead to some steel companies being forced to suspend production.

"A large scale reduction in the coal consumption will force enterprises to reduce production. Steel companies need to improve production technology and equipment. And those small- and medium-sized steel companies with production that fails to meet the standards and those without enough funds will face great challenges," according to Zhang Lin "There is likely to be a shake-up in the industry."

Another industry analyst told the newspaper that plans to limit coal consumption are likely to impact on tax revenue, employment and loan repayments. However, the same analyst also pointed out that the measures could also lead to a fall in the price of coal which will help control the input costs of industry.

Links and Sources
Beijing News: 冀拟5年削减4000万吨煤炭消费
Ministry of Environmental Protection: Li Keqiang presides over State Council Executive Meeting to make arrangements for curbing air pollution
Ministry of Environmental Protection: MEP Releases Air Quality of Key Regions and 74 Cities in May
Greenpeace East Asia: Pollution from coal power plants in the Beijing-Tianjin-Hebei region causes nearly 10,000 premature deaths