China scraps 15 coal projects abroad
Since the announcement of President Xi Jinping for banning financing on “new projects” in September last year, Chinese developers have cancelled 15 overseas coal projects as funding dried up and host countries demanded greener alternatives, the CREA said
China has axed 15 coal plants, having capacity of around 12.8 gigawatts, abroad after Chinese president XI's pledge to stop funding on such new plants.
But loopholes can still allow 18 other projects, 19.2 gigawatts of capacity, which remain in a grey area of the pledge to go ahead, according to a study published by the Helsinki-based Centre for Research on Energy and Clean Air (CREA) on Friday.
The newest guidelines of China's National Development and Reform Commission (NDRC) say developers should "proceed cautiously" on coal plants that were in the final stages of planning.
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Most of these projects are in Indonesia, where China is investing billions to mine nickel and other minerals needed to build electric vehicles, according to data from the Global Energy Monitor.
Besides, there are also China-based coal projects in Bangladesh. Vietnam and Bangladesh have in recent months requested China to build gas projects instead of the agreed coal projects, according to government notices, reports AFP.
Under the "no new coal overseas" policy, China, the world's biggest emitter of the greenhouse gases driving global warming, has vowed to peak carbon emissions by 2030 and become carbon-neutral by 2060.
Since the announcement of President Xi Jinping for banning financing on "new projects" in September last year, Chinese developers have cancelled 15 overseas coal projects as funding dried up and host countries demanded greener alternatives, the CREA said.
The NDRC guidelines have the potential to stop 37GW (32 plants) of overseas Chinese-backed coal projects in the pre-construction phase.
But a lack of clear rules has allowed Chinese developers to continue to build new coal power projects, it warned.
There is also a recommendation in the guidelines that projects under construction proceed with "caution," which should encourage the reexamination of 30 GW (36 plants) of plants already under construction.
The guidelines also encourage upgrades to currently operating coal plants in line with "international green rules and standards," which should encompass 17 GW (18 plants) of operating plants with Chinese equity.
Overseas power plants have generally followed lax host country standards, emitting levels of pollution far higher than China's domestic allowances.
