The coal industry is suffering substantial losses in 2015. It is said that Beijing, Hebei Province and numerous other Chinese cities are scaling back on their coal consumption.

China sees that a new round of falls in the coal price is inevitable amid cyclical price fluctuations. We should seek a green and sustainable development path, according to Wu Lixin, vice president of the Coal Strategic Planning Research Institute under the China Coal Research Institute.

Irreversible drop in coal price

There has been a substantial drop-off in the growth of coal consumption since 2012. In 2014, China's coal output was 38.7 billion tons, representing a year-on-year decrease of 2.5 percent.

Now, China is seeing a plummet in coal price. Data shows that for the time being, 80 percent of China's coal companies are suffering losses, says Yang Fuqiang, senior advisor in the Natural Resources Defense Council.

Experts hold that China's coal demand and production capacity will further reduce as China is shifting to a new development model, upgrading energy consumption and production structure and strengthening protection of the environment.

Yang Fuqiang said that bosses of some coal companies are not looking ahead at the profitability of their business, and keep running their companies as long as they have money to pay the salaries of workers. China is adding new coal-production capacity of a billion tons to the existing coal output of nearly 4 billion tons. The new capacity intensifies competition in the market, resulting in a falling price.

Explore a green, sustainable development path

There is little room for development in the coal industry. China should develop industries related to coal and guarantee environmentally friendly coal production,says Wu.

Yang suggested that coal companies explore other uses of coal in promoting standards of living and industrial production, other than as an important energy resource.

China closes coal mines that do not meet the requirements from the government and withholds approval for the building of new coal mines that cannot satisfy the conditions laid for scientific output, according to the No.99 and No.104 document released by China's General Office of the State Council. These documents also stipulate that the construction of new mines should faithfully follow proper procedures. In addition, those responsible for new coal mines will be severely punished if they build mines without permission or expand the coal mine of their own free will.

Wu also suggested that China should build a national coordinated mechanism for clean production and use of coal, strengthen financial support for developing key technological equipment, and work on pollution control.