The Clean Heating Transition 2013–2018
After the 2013 Air Pollution Prevention and Control Action Plan, reducing coal use became central to China’s strategy for cutting winter smog. Northern China posed a particular challenge because household heating still depended heavily on coal, especially loose coal burned in rural homes and small boilers.
By the end of 2016, about 83% of heated building area in northern China still relied on coal, and winter heating consumed roughly 400 million tonnes of standard coal each year. Around half of that came from loose coal and inefficient small boilers, which produced far more local air pollution than large power plants equipped with emissions controls.
The policy response therefore moved beyond regulating factory emissions. It began replacing the fuel itself. Local governments promoted coal-to-gas, coal-to-electricity, district heating, geothermal energy, biomass, industrial waste heat, and other cleaner heating systems. The transition required not only new household equipment but also gas pipelines, stronger electricity grids, subsidies, and reliable fuel supplies.
This made clean heating one of the first major environmental programmes to directly reshape everyday energy use in millions of homes and small businesses.
Policy Response
2013 — Air Pollution Prevention and Control Action Plan
“大气污染防治行动计划”
The State Council made coal reduction and cleaner energy substitution central elements of its national response to severe urban smog, especially in Beijing-Tianjin-Hebei and surrounding regions.
Official Chinese source:
https://www.gov.cn/zwgk/2013-09/12/content_2486773.htm
2017 — Clean Winter Heating Plan for Northern China (2017–2021)
“北方地区冬季清洁取暖规划（2017—2021年）”
The plan established a national framework for replacing loose coal and inefficient heating systems across northern China.
It set targets for clean-heating coverage to reach 50% by 2019 and 70% by 2021, with the replacement of approximately 150 million tonnes of loose coal and coal used in inefficient small boilers by 2021.
Official Chinese source:
https://www.ndrc.gov.cn/xxgk/zcfb/tz/201712/t20171220_962623.html
2017–2018 — Adjustment After Implementation Problems
“宜气则气、宜电则电、宜煤则煤、宜油则油”
After gas shortages, incomplete infrastructure, and heating difficulties emerged during the first large-scale winter conversions, central authorities stressed that clean heating should be adapted to local conditions rather than implemented through a single mandatory fuel switch.
The revised approach placed greater emphasis on maintaining reliable winter heating while continuing the longer-term replacement of loose coal.
Official policy explanation:
Coal-to-Gas and Coal-to-Electricity
2017
As part of northern China’s clean-heating transition, local governments accelerated programmes to replace loose coal with natural gas and electricity. The policy aimed to reduce winter smog by eliminating one of the dirtiest forms of household and small-boiler combustion.
In practice, the transition moved faster than some local energy systems could support. Gas pipelines, electricity infrastructure, household equipment, and fuel supply all had to expand at the same time. In parts of northern China, this created shortages, rising costs, and delays during the 2017 heating season.
The tension became especially visible in Hebei, where both households and small manufacturers were being pushed away from coal. When gas supply tightened, authorities had to prioritise residential heating over industrial use. Some factories that had already paid to convert their boilers to gas were then forced to suspend production because fuel had become too expensive or unavailable.
The episode showed that replacing a dirty fuel was not only an environmental problem. It was also a problem of infrastructure, affordability, and resource allocation.
Selected Sources
‘煤改气’，没暖气？供不上暖的原因是它！” — “‘Coal-to-Gas,’ but No Heat? Why the Heating Supply Fell Short”
Xinhua, December 5, 2017
https://www.xinhuanet.com/politics/2017-12/05/c_129757398.htm
“Freezing Cities Force China to Ease Curbs on Coal Heating”
Bloomberg News, December 8, 2017
Hebei Ceramic Factories Suspend Production
2017
As northern China accelerated coal-to-gas conversion in 2017, ceramic manufacturers in Hebei became one of the clearest examples of how clean-heating policy could affect small and medium-sized industry.
Many ceramic factories had already spent heavily to replace coal-fired kilns and boilers with natural gas equipment in order to meet new air-pollution requirements. But when natural gas demand surged during the winter heating season, supplies tightened and prices rose sharply. Residential heating was given priority, leaving some industrial users with insufficient gas.
In Gaocheng and Gaoyi, major ceramic-producing areas in Hebei, factories that had already completed expensive gas conversions were forced to suspend production. One company reportedly invested around RMB 20 million in conversion equipment but was later told that gas supply would be cut. The factory still had to cover wages for more than 400 employees, costing roughly RMB 1.8 million per month while production was halted.
Another ceramic producer, Fulong Ceramics, shut down four production lines and temporarily sent more than 1,000 workers home. Local industry representatives reported that around 20 of 26 ceramic enterprises in the area had suspended production during the gas shortage.
The episode highlighted a central tension in the clean-heating transition: factories were required to invest in cleaner energy, but compliance did not guarantee access to affordable fuel.
Selected Sources
高邑陶瓷遭遇天然气供应危机：20家企业停产” — “Gaoyi Ceramics Hit by Natural Gas Supply Crisis: 20 Companies Suspend Production”
Ceramics China, December 2017