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Is banning raw coal by 2019 realistic?

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Is banning raw coal by 2019 realistic?

As warmer weather offers abundant fresh air to breathe to Ulaanbaatar residents, most of us have tried to cast aside thoughts of the inevitable catastrophe that awaits us every winter. Due to the fact that air pollution in Mongolia is largely seasonal, in contrast to many countries that are plagued with the same problem, it creates a unique predicament in which action and accountability falters as pollution does. Amidst of a storm of outrage culminating in wide protests that gained worldwide coverage, Cabinet hastily drew up a plan to tackle the issue. In what has become its flagship action against air pollution, the government plans to ban the burning of raw coal in UB beginning on May 15, 2019, less than a year from now. The plan is to curb the 1.1 million tons of raw coal burned by 202,000 families in ger districts and replace it with coal briquettes, or what has been curiously dubbed “improved fuel”. Despite the confusing fuel moniker, it is simply coal briquettes that minimize smoke emitted from thousands of chimneys in ger areas. The 1.1 million tons of raw coal burned by households in ger areas account for more than 80 percent of the air pollution in Ulaanbaatar. As such, this measure is mainly aimed at curtailing the unauthorized burning of raw coal by households, businesses, and organizations. Power stations that have authorization to use coal to produce electricity and heating within the city will not be subject to this new restriction. Cabinet believes that the prohibition on burning raw coal will significantly lower dangerous air pollution levels in the capital. Cabinet has said it will consolidate efforts to improve the cost, access, and demand of coal briquettes as an alternative to raw coal. Around 600,000 tons of coal briquettes are expected to fully replace the 1.1 million tons of raw coal burned annually according to Cabinet. During peak season for coal burning, a household burning around four to five tons of raw coal could substitute it with around three tons of coal briquettes. The move from raw coal to coal briquettes could even be economically beneficial for families. According to Cabinet’s research, five tons of coal from the Nalaikh mine costs 850,000 MNT at 170,000 MNT per ton. While coal briquettes are more expensive per ton, less is needed due to its better efficiency compared to raw coal. As a result, three tons of coal briquettes costing 660,000 MNT at 220,000 MNT per ton could fully replace five tons of raw coal. This would mean a 190,000 MNT savings annually for a household according to Cabinet’s calculations. While Cabinet deserves credit for offering an alternative rather than forcefully prohibiting the only means of heating that many residents have, questions regarding the ability to produce enough coal briquettes have been brought into question. Of the 12 factories that currently produce coal briquettes, seven are in financial trouble due to overdue loans, according to the Ministry of Environment and Tourism. It is estimated that 50 billion MNT in funding is required to help finance the production of coal briquettes. Minister of Environment and Tourism N.Tserenbat reported to Parliament that his ministry is holding ongoing discussions with banks to find a solution to the financial issues facing the factories. Additionally, a coal briquette factory based at the Erdenes Tavan Tolgoi mine is being discussed preliminarily. It is estimated that this factory could produce around 30 percent of the improved coal while all of the factories are expected to collectively produce 198,000 tons of improved coal, well short of the 600,000 tons needed to fully replace raw coal. The ban on the burning of raw coal and its enforcement rests solely on the ability to provide residents with an alternative. Due to the fact that there are still questions and issues surrounding the production of that alternative, Cabinet’s hope to ban raw coal burning in less than a year is problematic at best and at worst, impossible. Cabinet realizes the unlikeliness of the ban being fully enforced by May 2019. As a result, extra steps have been taken to annul import and value-added taxes on products such as air purifiers and energy-conserving heaters. It is expected that the market price of such products will decrease by 10 to 15 percent as a result of the tax exemption. Additionally, more households are planned to be included in the night time electricity tariff exemptions. As of right now, it remains doubtful that the government will be able to fully enforce a ban on raw coal burning by 2019 or anytime soon. Even if it was able to produce coal briquettes to full capacity, it is not the be-all end-all solution to the problem. More deep-rooted problems lie at the core of the issue and a half-hearted attempt to replace coal with an improved version will ultimately not amount to much in the long run.

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