China needs to set a limit on coal consumption, a study conducted by Tsinghua University showed on Friday, following the landmark announcement by China and the United States on climate change targets.

Coal use should be stabilized by around 2020 to achieve the goal of peaking greenhouse gas emissions by 2030, said the study, China and the New Climate Economy.

"An absolute decline in coal consumption should then occur as soon as possible," said Teng Fei, professor at the Institute of Energy, Environment and Economy, at the university and an author of the report.

Coal is a significant contributor to PM 2.5, or particles smaller than 2.5 micrometers, and the greenhouse gas emissions that cause climate change.

In the Beijing-Tianjin-Hebei region, Yangtze River Delta and Pearl River Delta, coal burning is responsible for between 50 and 70 percent of PM 2.5 pollution.

Coal consumption in China could peak soon and may even fall 6 percent by 2020, based on current demand and economic growth projections, according to the report.

Low carbon growth can help China become a high-income country while reducing air pollution, said Teng, adding that China will lead the world by providing a blueprint for a new climate economy.

With good policies, it can meet these challenges while maintaining growth of 7 to 8 percent in the near-term and 5 percent by 2030, according to the study, which provides details of the policy and regulatory framework that would enable China to meet its new climate change and air pollution targets.

Teng said targets for reducing coal use and limiting greenhouse gas emissions can also help promote technological innovation and improvement in resource productivity.

Such improvement will be critical for China to avoid the middle-income trap as investment-driven growth declines and the country faces increasing resource constraints. They will also help China increase energy security by decreasing reliance on imported fossil fuels.

Without these measures dependence on foreign supply is expected to reach 75 percent for oil and more than 40 percent for natural gas by 2030, leaving key sectors of the Chinese economy exposed to the risk of price volatility, said the report.

Felipe Calderón, former president of Mexico and chair of the Global Commission on the Economy and Climate, said: "We do not need to choose between fighting climate change and growing the world's economy. That is a false dilemma.

"This study highlights the significant opportunities for China to continue to develop while reducing air pollution and the risk of dangerous climate change".

The study was undertaken as part of a series of country studies linked to the work of the commission.

The day of a coal miner	Inner Mongolia eases rules on coal firms