- China’s resolve to exit coal projects abroad would lead to the cancellation of 44 projects.
- The GEM also estimates that about $130 billion will be saved.
According to Global Energy Monitor’s (GEM) updated Global Coal Public Finance Tracker, the decision of the People’s Republic of China to end financing for overseas coal projects would impact 44 coal plants with a cumulative capacity of 42,220 MW. The GEM estimates that this decision will save about $130 billion and reduce annual coal demand growth by 30 million tonnes. Last Tuesday, Chinese President Xi Jinping at the United Nations General Assembly pledged. In addition, the Bank of China confirmed that it would stop financing new coal plants outside of China from the 1st of October.
This news means that 44 coal plant projects are likely to be cancelled as no other major financing options exist for new coal plants. Asian countries Japan and South Korea have also pledged to stop public financing for overseas coal projects earlier this year. The plans will also affect projects in Africa, cutting projects by 50 per cent as China had been the major financial supporter of new coal projects. As a result, new coal plants in Kenya, Madagascar, and the Ivory Coast will be cancelled. The largest impact will be felt in Bangladesh and Mongolia, as the number of coal plants proposed in both countries would decrease by over 90 per cent.