China shifts focus from overseas coal to renewable energy projects

China is significantly altering its approach to international energy investment by scaling back coal-fired power plant projects in developing nations. According to an analysis by the Centre for Research on Energy and Clean Air (CREA), China has scrapped over 100 planned overseas coal projects since President Xi Jinping pledged at the UN five years ago that the nation would not build new coal plants abroad.

While 67 percent of previously planned overseas coal plants have been dropped and another 22 percent remain in the planning phase, some implementation gaps remain. Approximately 7 percent of the planned plants have been completed, and 3 percent are currently under construction.

Domestically, China continues to expand its renewable capacity. In Qinghai province, a massive solar power plant utilizing mirrors and molten salt is being connected to the grid. Operated by Powerchina, the facility is expected to generate 2.2 terawatt-hours annually and reduce carbon dioxide emissions by approximately 2.07 million tons per year. Despite this growth in green energy, China remains heavily reliant on coal, with hundreds of new domestic coal projects planned for the coming years.