The announcement by China’s National Energy Administration (NEA) in October to limit the construction of coal-fired power facilities across the country is underpinned by the government’s efforts to reduce pollution and overcapacity, amid stalling power demand and continued growth in renewables capacity.

Among the announcements by the NEA is to postpone the construction of some coal-fired plants that have already secured approval and to cap the capacity of some large coal projects under construction in some of the coal-heavy provinces in the country.