China’s political banks cut overseas energy funding to zero in 2021 – research

A surveillance camera is seen near a coal-fired power plant in Shanghai, China October 14, 2021. REUTERS/Aly Song

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SHANGHAI, March 15 (Reuters) – China’s two main trade policy banks made no new overseas energy financing commitments in 2021, a first for this century and a sign that the commitment Beijing’s decision to stop investing in foreign coal-fired power plants is already in effect, according to new research. Tuesday.

This shift was highlighted in a new study of China Development Bank (CDB) and China Export-Import Bank (CHEXIM) project commitments last year by the Development Policy Center from Boston University.

Chinese President Xi Jinping pledged to end his country’s support for new overseas coal-fired power plants during a video address to the United Nations General Assembly last September.

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“This is a dramatic decline, but ultimately not surprising, given the lingering effects of the COVID-19 pandemic, shrinking borrowing capacity in developing countries, and the global trend of eliminating coal,” said Cecilia Han Springer, deputy director of the global center. Initiative China.

The two banks had extended a total of $234.6 billion in loans to foreign governments and associated entities in the energy sector since 2000, including $75.1 billion since 2016 alone, surpassing far the total energy sector lending by the World Bank during the period.

They did not respond to faxed and emailed requests for comment.

Han Springer said the figure could rebound after 2021, saying there was a major opportunity to invest in global clean energy infrastructure.

President Xi’s pledge meant that 99% of global development funding was now spent on the clean energy transition, Boston University said in a previous study. Read more

However, it was unclear whether his wish would also result in the cancellation of projects already underway.

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Reporting by David Stanway; Editing by Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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