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China's economic reform expected to slow energy demand

Updated: 2016-05-03 10:25

    The continuing reform of China’s economy will mean growth of the country’s energy demand will slow sharply in the next two decades, according to an industrial report.

    In particular, China will reduce its reliance on coal, with the importance of coal in fueling economic growth falling sharply. In the last five years demand for coal in China fell while the economy still grew significantly, according to the BP Energy Outlook between 2016 to 2035.

    China’s coal consumption will grow only 0.2 percent annually during this period. In the past two decades, demand grew 12 percent annually, according to the Outlook.

    BP Group, one of the major global energy companies, released the Chinese edition of the Energy Outlook on Thursday in Guangzhou, the capital of Guangdong province.

    "China’s fuel mix is also likely to change significantly, driven by its changing economic structure and environmental and climate policies," said Spencer Dale, BP Group Chief Economist.

    The use of non-fossil fuels and gas are both expected to increase rapidly, with their combined share in China’s energy mix more than doubling, from the current 15 percent to around a third by 2035, according to the report.

    "China’s economy will become less dependent on coal-intensive sectors, reflecting an improving economic structure and more environmentally-friendly model," Dale said.


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