administration, regulation and public
engagement to enable collaborative
supervision.
4.5.5 Improve China’s Energy
Emergency Response
System and Increase Its
Strategic Oil Reserves
China should accelerate its introduction of the
laws and regulations on energy emergency
response and strategic reserve management to
improve coordination and command in response
to energy emergencies and the ensuing risk to
energy security. Energy emergency response
tools should be strengthened. The use and storage of strategic oil reserves should be improved,
as should supervision, post-event evaluation, and
information, technology and capital management
systems. Private capital’s desire to enter the
commercial reserve sector should be stimulated
with a reasonable reserve price mechanism.
4.6 Deepen Reform of the Coal
Industry
4.6.1 Restructure National Coal
Authorities
Government should guide and serve the coal
industry. By grasping the opportunities provided
by “deepening CPC and national institutional
restructuring”, national coal authorities should be
restructured to better implement coal industry
and market strategies and reduce administrative
intervention in individual entities.
4.6.2 Improve the Regulatory System
First, the coal industry regulatory system should
be strengthened and include input from regulatory and government authorities, central and
local governments, trade associations and social
organisations.
Second, the regulatory regime should cover
the various parts of the coal market. In addition
to coal quality, the regulation of commercial
transactions, logistics, capital and information
flow should be considered.
Third, regulation should efficiently target key
processes, such as quality standards, environmental protection, performance of contract, credit
supervision, risk supervision, flow rate and flow
direction control, and coal mine safety.
Fourth, supervision of coal mine safety needs
to be aligned with reform of the state-owned
capital management system. Information and
smart technologies should be used to do this. The
limits of corporate governance should be defined
to reduce the burden of management on shareholders and investors.
4.6.3 Build a Market Information
Network
First, coal circulation (from mine to end user)
should become increasingly smart to provide
insights into logistics and processing, deliver
important information on the coal market, and
enable key performance indicators to be measured.
Second, smart technologies should be used to
create integrated coal distribution parks, and
centralised real-time data acquisition points
should be set up at different distribution nodes.
Third, administrative silos should be dismantled and the regulatory IT platform should be
able to aggregate data from different authorities
and local government departments.
Fourth, cooperation between coal industry
associations and big data companies should be
enabled to create an intelligent coal market
information network and enhance coal distribution regulations.
4.6.4 Deepen the Reform
of State-Owned Coal
Companies
China should seize the policy opportunities provided by the structural reform of the coal
industry and the state-owned capital management
system to speed up the optimisation of capital
stock and eliminate inefficiencies.
At the same time, efforts should be made to
promote the two-way flow of capital, coordinate the
exit of inefficient assets, facilitate the entry of new
companies, optimise the industry’s structure,
improve the operation of coal companies, and
36
X. Zhaoyuan and M. Ishwaran
engagement to enable collaborative
supervision.
4.5.5 Improve China’s Energy
Emergency Response
System and Increase Its
Strategic Oil Reserves
China should accelerate its introduction of the
laws and regulations on energy emergency
response and strategic reserve management to
improve coordination and command in response
to energy emergencies and the ensuing risk to
energy security. Energy emergency response
tools should be strengthened. The use and storage of strategic oil reserves should be improved,
as should supervision, post-event evaluation, and
information, technology and capital management
systems. Private capital’s desire to enter the
commercial reserve sector should be stimulated
with a reasonable reserve price mechanism.
4.6 Deepen Reform of the Coal
Industry
4.6.1 Restructure National Coal
Authorities
Government should guide and serve the coal
industry. By grasping the opportunities provided
by “deepening CPC and national institutional
restructuring”, national coal authorities should be
restructured to better implement coal industry
and market strategies and reduce administrative
intervention in individual entities.
4.6.2 Improve the Regulatory System
First, the coal industry regulatory system should
be strengthened and include input from regulatory and government authorities, central and
local governments, trade associations and social
organisations.
Second, the regulatory regime should cover
the various parts of the coal market. In addition
to coal quality, the regulation of commercial
transactions, logistics, capital and information
flow should be considered.
Third, regulation should efficiently target key
processes, such as quality standards, environmental protection, performance of contract, credit
supervision, risk supervision, flow rate and flow
direction control, and coal mine safety.
Fourth, supervision of coal mine safety needs
to be aligned with reform of the state-owned
capital management system. Information and
smart technologies should be used to do this. The
limits of corporate governance should be defined
to reduce the burden of management on shareholders and investors.
4.6.3 Build a Market Information
Network
First, coal circulation (from mine to end user)
should become increasingly smart to provide
insights into logistics and processing, deliver
important information on the coal market, and
enable key performance indicators to be measured.
Second, smart technologies should be used to
create integrated coal distribution parks, and
centralised real-time data acquisition points
should be set up at different distribution nodes.
Third, administrative silos should be dismantled and the regulatory IT platform should be
able to aggregate data from different authorities
and local government departments.
Fourth, cooperation between coal industry
associations and big data companies should be
enabled to create an intelligent coal market
information network and enhance coal distribution regulations.
4.6.4 Deepen the Reform
of State-Owned Coal
Companies
China should seize the policy opportunities provided by the structural reform of the coal
industry and the state-owned capital management
system to speed up the optimisation of capital
stock and eliminate inefficiencies.
At the same time, efforts should be made to
promote the two-way flow of capital, coordinate the
exit of inefficient assets, facilitate the entry of new
companies, optimise the industry’s structure,
improve the operation of coal companies, and
36
X. Zhaoyuan and M. Ishwaran