Research shows that China continues to support overseas coal plants, despite its 2021 commitment

According to a Tuesday analysis of energy investment in BRICS nations, Chinese companies are still building coal-fired electricity plants in Indonesia. This is despite their pledge to stop funding coal projects abroad by 2021.

Global Energy Monitor, a U.S. think-tank, said that China was involved in the construction of 7.7 gigawatts in new coal-fired electricity, mainly plants to power nickel smelters located in Indonesia.

The BRICS group was formed by Brazil, Russia India and China in 2009. Since then, it has expanded its membership to include around a quarter (25%) of the global economy, and about half the carbon dioxide emissions that are responsible for climate change.

The rapid deployment of renewables in Brazil, India, and China accounted for more than half the total electricity mix within the bloc last year. However, the ten newest members, including Nigeria, Kazakhstan, and Indonesia, still rely heavily on fossil fuels, with Chinese support, to meet the rising demand for energy.

James Norman, GEM's Global Integrated Power Tracker project manager, said that investing in coal and gas could lead these countries on the wrong path.

GEM data shows that the 10 countries are building 25GW of coal and oil capacity, while only 2.3GW is being built for solar and wind. GEM data showed that another 63 GW gas-fired power capacity is being developed.

GEM reported that 62% of all the generation capacity currently under construction in 10 countries is dependent on Chinese state-owned companies for financing, procurement, engineering, or construction. China is funding 88% of the new coal-fired power plants under construction.

The Chinese environment ministry didn't immediately respond to an inquiry for comment.

According to a study published last year, President Xi Jinping pledged that China would not help finance or build overseas coal-fired electricity after 2021. However, since then, at least 26.2-GW of new capacity has been built with China's support.

Climate change is likely to be a major topic at a meeting between BRICS leaders and Brazil in June. The host country will call on China and other countries to increase their commitments to reduce emissions before the COP 30 summit in November. (Reporting and editing by SonaliPaul; David Stanway)

(source: Reuters)