China keeps coal promise, but loopholes fuel expansion
Summary
China has canceled most of the overseas coal power projects it planned in 2021, but loopholes still allow Chinese companies to keep investing in coal abroad. Experts warn that rising energy-security concerns in Southeast Asia are driving fresh coal expansion even as renewable energy grows rapidly.
Key Points
- China says it has canceled 67% of the overseas coal power capacity it planned in 2021, avoiding an estimated 6.4 billion tons of lifetime carbon dioxide emissions.
- Experts warn that private Chinese companies are still investing overseas through regulatory loopholes, especially in captive coal projects.
- Indonesia remains the biggest destination for China-backed coal capacity, followed by Vietnam and Pakistan.
- Rising energy-security fears in Southeast Asia are slowing the coal phaseout despite rapid growth in solar, wind and electric vehicles.
