Coal exports to China, Australia's largest customer, are predicted to taper off within the decade as the country tackles serious pollution problems and energy security.

Around 90 per cent of China's electricity comes from coal-fired power stations.

Professor Frank Jotzo is the director of the Centre for Climate Economics and Policy at the Crawford School of Public Policy, a not-for profit foundation.

He is with the joint Australia-China research program on climate change policy, which is investigating international models of emissions trading schemes (ETS) and carbon taxes.

Professor Jotzo says as more renewable and nuclear energy sources are adopted, and China starts to rely on internal coal supplies, imports from Australia will end in what he describes as a 'peak coal' scenario.

"Quite a few of our academic colleagues in China are talking about peak coal in China, possibly within this decade," he said.

"A few of the more radical voices on that front say that peak coal could happen within the next few years.

"I see the markets for Australian coal will increasingly be countries like India, other parts of South Asia and other lower-income developing countries around the world."

Despite the talk of peak coal from Australia, Professor Jotzo says coal will remain the dominant source of power in China for a long time to come.