The energy sector is increasingly facing water scarcity constraints in many regions around the globe, especially in China, where the unprecedented large-scale construction of coal-fired thermal power plants is taking place in its extremely arid northwest regions. As a response to water scarcity, air-cooled coal power plants have experienced dramatic diffusion in China since middle 2000s. By the end of 2012, air-cooled coal-fired thermal power plants in China amounted to 112 GW, making up 14% of China's thermal power generation capacity. But the water conservation benefit of air-cooled units is achieved at the cost of lower thermal efficiency and consequently higher carbon emissions intensity.

"First, China must move away from coal and boost recycling and renewable energies. Second, emissions-mitigation indicators, such as energy-efficiency targets, should be set relative to physical output (such as tonnes of steel production) rather than to economic growth. Third, regional energy supply and demand must be balanced. Fourth, energy prices should be linked to market mechanisms rather than set centrally by authorities. And fifth, China must reduce air pollutants alongside CO2 emissions."