EJ Explains| China's great energy crisis, all you need to know

China is facing an acute coal shortage leading to spiralling prices of energy fuels across the globe as the world's second biggest economy grapples with a power shortage. Here is all you need to know about China's energy crisis and it's global impact-:

• Coal-based producers account for more than 70% of the China's electricity generation
• China's push to reduce greenhouse gas emissions and go “carbon neutral” by 2060 has capped the growth of coal mining.
• Demand pick up begins as covid recedes, imports have risen more than 20% since the start of June
• Inventories at six major Chinese power groups are down 31% and the lowest since 2017
• European coal prices have risen to a 13-year high, and Australian Newcastle coal has surged by 250% from last September
• Higher coal prices leading to rising cost of metals across the board as it is an input material for all factories
• Nickel prices are at 14 year high, Aluminium as well is touching record high levels.