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China limits coal ash content to 10% in urban areas

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Report summary

On 5 April, China's Ministry of Environmental Protection announced new regulations restricting coal use in built-up areas. The three-tiered regulation bans the use of coal with more than 10% ash in boilers of a certain size – or outright. The new measures are a sign environmental policy is likely to put more pressure on coal in the long term. However, China does not have sufficient reserves of the specified coal, so switching to gas will become increasingly attractive.

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