Environment & Climate
China cuts most overseas coal funding despite loophole concerns, report says
ABC News reports that China canceled 67% of planned overseas coal power capacity following a 2021 pledge.
The short version
- China has canceled 67% of the overseas coal capacity it planned in 2021, totaling 61.5 gigawatts, according to a report by CREA and PACS.[ABC News]
- The cancellations averted an estimated 6.4 billion tons of lifetime carbon dioxide emissions.[ABC News]
- Experts warn that private Chinese firms exploit regulatory loopholes to finance off-grid captive coal projects, primarily in Indonesia.[ABC News]
- Southeast Asian nations have increased coal consumption to bolster energy security amid geopolitical tensions.[ABC News]
Key facts
- In 2021, Chinese President Xi Jinping pledged at the UN General Assembly that China would stop financing overseas coal power plants.[ABC News]
- A report by CREA and PACS indicates China has canceled 67% of its planned 2021 overseas coal capacity, equaling 61.5 gigawatts.[ABC News]
- The project cancellations prevented an estimated 6.4 billion tons of lifetime carbon dioxide emissions.[ABC News]
- Indonesia leads continued China-backed coal projects with 17.1 gigawatts planned, largely via captive plants for nickel and aluminum smelting.[ABC News]
- Vietnam and Pakistan each maintain under 4 gigawatts of China-backed coal capacity in development.[ABC News]
What remains uncertain
- The full extent to which private Chinese companies will continue funding captive industrial coal facilities through regulatory exceptions remains unclear.[ABC News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.