Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance
In recent years, China has grown into a major provider of coal power finance in overseas markets, replacing financing by major development institutions while providing potentially less stringent environmental guidelines. In September 2015, China made a surprise announcement that it would commit to “controlling public investment flowing” into high carbon overseas projects. This was followed by an announcement in November 2015 that OECD countries are committing to common standards for coal subsidies, also potentially significantly restricting international finance for coal power.
These announcements have been closely followed by the climate community, while information about overseas coal finance, particularly Chinese finance, has been lacking. Thanks to a new data collection effort, CPI has been able to identify China’s role in international coal power generation deployment and to provide the most complete estimate of Chinese finance for overseas coal projects to date.