This study analyzes the effects of technological progress for coal utilization during urbanization in China by a hybrid computable general equilibrium model. Firstly, the impacts of energy efficiency and industrial technology upgrading on total coal consumption, coal consumption per unit of GDP and related carbon dioxide emissions per unit of GDP, electricity and heat consumption, electricity and heat consumption intensity during the period from 2002 to 2030 are examined. Then the effects of low-carbonized technology such as oxy-fuel combustion based CCS technology in coal-fired power industry are also estimated. Simulation results show that developing high-efficient and lowcarbonized coal combustion technologies is the key to realize sustainable coal utilization in China.