Coal news and updates

China Moves to Cut Coal Import Tariffs to Zero

China has announced that it is cutting coal import tariffs as it looks to safeguard energy security as global prices climb.

The Customs Tariff Commission of the State Council said in a statement issued Thursday that it will implement a provisional zero import tax rate for coal from May 1 through March 31, next year. At present, tariffs run from 3% to 6%, based on coal type.

The move by the world's biggest importer of the fuel comes as trade disruptions are exacerbated by Russia's war in Ukraine, pushing prices of many commodities higher. Energy research and business intelligence firm Rystad Energy said in a research note last month that it expects a coal price shock to hit Europe and spread around the world, projecting prices will pass $500 a tonne this year.

Coal is China's number 1 source of energy, and a shortage of the fossil fuel contributed to the power outages that roiled the country last year.

Beijing has underlined the importance of energy security at key political events like the Central Economic Work Conference last year and this year's Two Sessions meetings, Morgan Stanley Research analysts said in a report. Even as China strives to pivot away from coal as it aims for net zero emissions by 2060, officials have stressed that "a balance must be struck between carbon neutrality and energy security," the analysts said.

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com and Clarence Leong at clarence.leong@wsj.com