Despite a commitment made in 2021 to halt financing for coal-fired power plants abroad, China is still actively constructing these facilities in various countries, according to a report from the Finland-based nonprofit Centre for Research on Energy and Clean Air (CREA).
The pledge, intended to reflect China’s shift towards greener energy policies, has primarily resulted in the cancellation of planned coal power projects outside its borders. However, CREA’s report reveals that the rate of these cancellations has significantly declined since the beginning of 2024.
As of now, China has canceled approximately 5.6 gigawatts (GW) of planned coal generation capacity abroad in 2024. In comparison, the total cancellations for the years 2022 and 2023 amounted to 15.9 GW. Alarmingly, while China has canceled this capacity, it has simultaneously constructed an additional 7.9 GW of coal power plants overseas. This brings the total operational coal capacity built by China in foreign countries to 26.2 GW.
This figure marks a notable increase from 2023, when the total operating coal capacity was recorded at 18.3 GW. Furthermore, the capacity built abroad in 2022 stood at only 9.2 GW. Over the past three years, China has canceled a cumulative 42.8 GW of coal generation projects; however, CREA asserts that these efforts fall short of the necessary commitments and urges the Chinese government to intensify its project cancellations to align with its stated objectives.
Currently, there are 52 coal-fired power plant projects under construction or soon to be initiated by Chinese firms around the globe, with a combined capacity of 49.5 GW. This amount surpasses the total capacity of projects canceled since the 2021 pledge.
Additionally, CREA notes that China’s total overseas power generation initiatives now include 3.4 GW in new capacity that had not been previously disclosed. This capacity has progressed directly to the construction phase. Furthermore, an additional 4.9 GW is in the pre-permit phase. Although not all of this capacity pertains to coal generation, there are still three coal projects totaling 1.5 GW planned for construction in Kyrgyzstan, Zambia, and Zimbabwe, as highlighted by the Finnish think tank.
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