Page 6 - AsiaElec Week 39 2021

AsiaElec COMMENTARY AsiaElec

China’s promise of no overseas

coal financing could free up

$130bn for green investment

INDIA CHINA’S promise to abandon financing coal If China’s announcement excludes any future
projects overseas could affect a total 44 coal public financing, all 44 coal plants are at risk of
plants across Asia and Africa, with a combined being cancelled, given the lack of other financ-
42,220MW of capacity. ing options for new coal plants.
This could free up $130bn over the coming Japan and South Korea pledged to stop pub-
decades that would be available to invest in lic lending for overseas coal power earlier this
renewables, and would reduce growth in global year, and they now join the G7 nations in com-
coal demand by 30mn tonnes, adding up to mitting to end international funding for coal.
1.1bn tonnes over the lifetime of the plants, said Five of the projects are being considered for
Global Energy Monitor’s as it updated its Global funding from the Bank of China, and are there-
Coal Public Finance Tracker. fore at risk of having their financing from the
Beijing has not yet published precise details of bank cancelled as soon as next week.
how it will withdraw from coal funding abroad, The 44 coal plants represent over 40% of the
after Chinese President Xi Jinping made the 103,000 MW pipeline for new coal plants in the
announcement at the UN on September 21. twenty countries. If the coal plants are cancelled,
Meanwhile, the Bank of China on September it would result in savings of over $130bn – $50bn
24 that it would no longer provide financing for in construction costs and over $80bn in fuel and
new coal plants and coal mining projects outside operational costs over the lifetime of the plants.
China, starting from October 1, 2021.
Africa, Asia
At risk In Africa, cancellation of the plants would cut the
GEM said that 44 coal plants with 42,220 MW amount of proposed coal power by half, as China
of capacity were currently under consideration has been a major financial supporter of new coal
for public financing from state-owned Chinese plants in the continent.
institutions, and could therefore be affected Cancellation of the projects would also com-
by China’s announcement. The proposals are pletely eliminate the pipeline for new coal plants
spread across 20 countries in Asia, Africa, South in Kenya, Madagascar, and Cote d’Ivoire.
America, and Eastern Europe.

P6 www. NEWSBASE .com Week 39 29•September•2022