As of the 1st January 2015, China has banned the import of low-grade, ‘dirty’ coal into the country. China accounts for around half of the global coal consumption with much of it coming from Australia.

China has banned the import of coal with a sulphur content of more than 3% and an ash content of more than 40% the National Development and Reform Commission said late Monday. Highly populated areas such as Shanghai, Guangzhou, Beijing and Tianjin, which are all struggling with chronic pollution, the restrictions are tougher – at 16 per cent ash and 1 per cent sulphur.

Those that do not meet the standards will either have to clean their coal before export resulting in higher costs or find someone else to buy their dirty coal. It seems unclear how this ban is going to affect Australian exports. The Australian Financial Review reported Wood Mackenzie’s China consulting manager Rohan Kendall as saying that this ban would affect 100% of Australia’s exports as it has a high ash content. However, the Minerals Council of Australia was quick to say that reports were “misleading and unnecessarily alarmist.”

“There is nothing in the information which suggests that Australian coal exporters will be disadvantaged and we are confident that we can meet the proposed specifications,” said the council’s executive director Greg Evans.

Australia currently ships 49 million tonnes of thermal coal to China each year.

Greens Senator Larissa Waters said: “The Minerals Council is fooling themselves and Australians. The writing has been on the wall for a long time. New clean energy investment in China is outstripping fossil fuel investment. China is serious about cleaning up their air pollution. Coal imports are flat, they are bringing forward an emissions trading scheme in 2016 and Beijing has placed a cap on coal.”

“We have the potential to transition to a clean energy future by becoming a world leader in renewable energy, instead of exporting coal that the world doesn’t want, but the Abbott government is holding us back.”

The Chinese Government is determined to deal with its pollution issues. They are closing down 50 000 small coal fired furnaces this and cleaning up coal-burning fire stations. They are also taking 6 million high emission vehicles off the road and have been increasing the number of electric vehicles.