Explaining the slow progress of coal phase-out: The case of Guangdong-Hong Kong-Macao Greater Bay Region

Abstract

Prompted by the urgency of climate change, this paper analyses the impediments for coal phase-out, by using the Greater Bay Region in China as a case study. Rather than factors specific to coal production, transport and consumption (e.g., subsidies, and vested interests), as suggested by existing literature, the analysis of this paper demonstrates that coal phase-out in the region has encountered a range of market (e.g., high gas price), infrastructure (such as, inadequate network), and regulatory (e.g., prolonged project approval) impediments; these impediments have hindered the effective deployment of alternative energy sources, raising concern about coal phase-out and its crippling impacts on the security of energy supply.Redressing these impediments is therefore a key priority for promoting a smooth coal phaseout in the region. This requires a mix of policies addressing two dimensions: 1) those aimed at squeezing out coal from the energy-mix to create room for alternative low-carbon energy sources; and 2) those aimed at supporting the uptake of these sources. Implementing these policies is however a challenging task as it relies on close-centre-local, and inter-and intraregional cooperation, especially in a resource-poor region with a disperse energy endowment.Achieving this is difficult because the energy policy process of the country has long been characterised by fragmented authority and territorial administrative divisions with a proclivity for local governments to work in isolation from each other.

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