China’s overseas coal exit fuelled by the bottom line, not green leadership, experts say
- Beijing’s cuts to overseas coal power projects based on ‘economic rather than long-term environmental considerations’, report says
- Meanwhile, analysts warn domestic coal power boom is ‘costly detour’ in China’s energy transition
The announcement was hailed by the international community, with United States climate envoy John Kerry saying he was “absolutely delighted to hear that President Xi has made this important decision”.
China’s overseas coal exit “seems to be based foremost on economic rather than long-term environmental considerations”, said Christoph Nedopil, author of the article published on Thursday.
In the article, Nedopil, who is an associate professor of economics at Fudan University, said that since 2019, multiple countries have re-evaluated their demands for coal plants because of economic, environmental or social risks.
Between 2006 and 2021, China was the world’s largest financier of overseas coal-fired power plants, completing about 54 gigawatts (GW) of coal power projects across 20 countries in that period.
02:48
Chinese firms must decide whether to import coal ‘on their own’: China’s ambassador to Australia
Some countries suspended coal-fired power projects after lower-than-expected economic growth estimates forced them to lower their projected electricity requirements.