China’s National Energy Administration (NEA) has told local authorities to curb the irrational development of coal-to-oil and coal-to-gas projects, after new technology sparked an investment spree without regard to environmental and economic realities. The country will ban coal-to-gas projects with an annual output of less than 2 billion cubic meters, and coal-to-oil projects that produce 1 million metric tons or less. Projects larger than those will be subject to regulatory approval from the central government. Data show that nearly 70% of energy consumed in China comes from coal, a ratio much higher than in most developed countries. Coal-to-oil and coal-to-gas projects will be banned in provinces that have a net import of coal. The excessive or improper use of water resources will also be strictly prohibited. The NEA also said it is working with the National Development and Reform Commission (NDRC) on two separate documents to guide the orderly development of coal-to-oil and coal-to-gas projects. The documents will be released soon.