China can lead, and Japan and South Korea can follow, in cutting coal finance in Southeast Asia
- The world’s three biggest public financiers of coal should target Southeast Asia’s renewable energy market, worth up to US$205 billion over the next 10 years
- China can show by example that climate commitments should include overseas investments
While that absence is the most alarming in China’s case due to the volume and direction of its finance, the lack of leadership on sustainable climate finance is a global crisis.
From 2009-2019, public banks from the three nations invested US$78.9 billion in overseas coal and gas projects, according to a Greenpeace Japan report. During that 10-year span, only US$9.1 billion went to solar and wind energy projects.
Most of China, Japan and South Korea’s overseas energy investment goes into Southeast Asia, which has the largest number of coal-fired power plants under planning or construction outside China. It is also home to four of the 10 countries most vulnerable to climate change. As a developing area that is heavily reliant on East Asia to meet rising energy demand, Southeast Asia must be ground zero for a better global climate finance strategy.
02:06
Chinese cash funds African coal plants despite environmental concerns
The Greenpeace Japan report also showed that Southeast Asia’s renewable energy market is worth up to US$205 billion over the next 10 years. This figure was drawn from the calculation of the invested capital required to meet the region’s electricity demand by 2030 while keeping emissions under a net-zero carbon commitment.