China is pushing harder than ever before to cut excess coal power capacity to prevent the imminent risks from overcapacity reaching a critical point. A series of measures have been announced to tighten up enforcement and support with outdated coal fired power plants ordered to close and new projects put on hold or even cancelled. The latest government issued list targets 106 GW to be cancelled or deferred and 5 GW to be decommissioned. With a similar list issued in January the total suspended capacity could reach 190 GW. Coal rich provinces such as Shanxi and Inner Mongolia will bear the brunt. In this campaign environmental policies are playing a bigger role in determining the scale of capacity rationalisation. Nevertheless how to manage the financial fallout as a result of the mass suspensions could prove a key challenge to the supply side reform s agenda.