China adheres to overseas coal funding pledge despite regulatory loopholes

China has largely adhered to a 2021 pledge made by President Xi Jinping to cease funding overseas coal power plants, according to a new report released during the United Nations General Assembly and New York Climate Week. While China has canceled the majority of the coal projects it had planned five years ago, experts warn that companies are utilizing regulatory loopholes to continue overseas coal investments.

As a primary infrastructure financier for the Global South and a leader in renewable technologies like solar and wind, China’s actions are critical to the global energy transition. However, recent energy shocks stemming from the Russia-Ukraine and Iran wars have heightened the demand for energy security, particularly in Southeast Asia, which remains heavily dependent on fossil fuels.

President Xi Jinping did not attend this week’s UN meeting, opting instead for a summit with U.S. President Donald Trump. Vice President Han Zheng was sent to New York to address the General Assembly.