CHINA will establish a special relending facility worth 200 billion yuan (US$31.35 billion) to support the clean use of coal, major domestic broadcaster CCTV quoted the country’s State Council as saying Wednesday.

The plan comes after China has already made enormous efforts to reduce coal consumption. Coal accounted for 56.8 percent of China’s primary energy consumption in 2020, down from around 68 percent a decade ago.

The facility will be used to promote clean and efficient processing of coal, CCTV said. It did not specify what that would involve, but such processing could include washing to remove toxic pollutants and impurities.

The facility is also aimed at promoting safe, efficient, green and smart coal mining, as well as development and use of coalbed methane, an unconventional form of natural gas found in coal deposits, CCTV reported in an evening newscast.

The State Council, or Cabinet, said the loans would be in addition to a lending tool rolled out by the central bank this month to support efforts to cut carbon emissions, CCTV said.

The People’s Bank of China said Nov. 8 it would provide financial institutions with low-cost loans to help firms cut emissions, supporting the country’s long-term carbon neutrality goals.

President Xi Jinping in September said China would stop building new coal-fired power projects overseas. (SD-Agencies)