Joe BidenJoe BidenQuestions remain unanswered as White House casts upbeat outlook on Trump’s COVID-19 fight CNN anchor confronts senior Trump campaign adviser after motorcade: Trump’s ‘downplaying the virus’ Biden again tests negative for COVID-19 MORE’s plan for climate change and environmental justice attacks China for financing fossil fuels. If the United States wants to green China’s overseas energy finance, it must compete by offering attractive funding for cleaner alternatives, such as solar and wind power.
China’s overseas energy finance has had a large impact on energy development around the world. According to Boston University’s Global Development Policy Center, Chinese policy banks provided energy finance worth $251 billion outside China between the years 2000 and 2019. Of this total, $26 billion funded coal and $88 billion funded oil.
China’s energy infrastructure footprint will play a decisive role in accelerating or mitigating climate change. The emerging economies that rely on Chinese finance to meet their growing investment needs often have few alternatives, given their low credit ratings. For example, Pakistan’s plans to expand its power generation capacity are financed largely by China.
However, China’s policies are not the primary reason for investment in coal, oil and gas. Our research at the Initiative for Sustainable Energy Policy (ISEP) shows that both Chinese project developers and state-owned policy banks are primarily interested in developing business in the recipient countries, with little interest in fossil fuels in particular. China’s energy finance is opportunistic, not strategic, in nature. China is willing to finance a wide range of projects, as long as the project developer is a Chinese company.
If recipient countries, from Bangladesh to Pakistan, decided to abandon coal, China would follow suit. Recipient countries are still building coal-fired power plants because they do not have enough experience or mature market mechanisms to support