China’s funding for overseas coal projects under construction to release 300 million tonnes of emissions a year, climate experts say

China’s decision to stop funding new coal power projects overseas has been welcomed by climate experts, but they were equally disappointed by Beijing’s commitment for projects already under construction, pointing out that this could lead to 300 million tonnes of carbon emissions a year.

It is the first official document to provide clarity on Chinese President Xi Jinping’s pledge last September to stop building new coal power projects abroad.

China will also strengthen cooperation with BRI countries in the areas of green infrastructure, renewable energy, green transport and green finance to help its partner nations improve their capacity to respond to climate change, according to the NDRC document jointly published with the ministries of foreign affairs, environment, and commerce.

“This guidance is an ambitious vision of coordinated, green and low-carbon overseas engagement – in that sense [it is] possibly the most ambitious climate-oriented framework to date by any country guiding their overseas activity,” said Cecilia Han Springer, assistant director of Global China Initiative at the Boston University Global Development Policy Center.

However, the decision to fund those already under construction could still cause heavy emissions, said Springer, adding that if all coal plants under construction come online, they could emit up to 300 million tonnes of carbon dioxide emissions a year, roughly equal to Spain’s annual emissions.

China, the largest international financier of coal projects during the last decade, is currently supporting around 50 gigawatts (GW) of overseas coal plants under construction and another 50GW under planning but yet to break ground, according to data from the Global China Initiative.