Beijing April 23 2022: China has shelved plans to build 15 coal power plants overseas — with a capacity of around 12.8 GW — after it banned funding such projects in 2021, while another 37 GW of capacity currently in the pre-construction phase could be stopped, a new study showed April 22.
The shelved projects were to be concentrated in countries including Vietnam, Turkey and Bangladesh.
“Many of these cancellations were a result of revised domestic energy plans, which emphasize the importance of host countries’ policies and priorities,” the study by Helsinki-based think tank, the Centre for Research on Energy and Clean Air, or CREA, said.
However, 18 projects with a capacity of 19.2 GW are in a “grey area” and could still go ahead, having secured the necessary financing and permits, CREA said, adding that a lack of clear rules had allowed Chinese developers to continue to build new coal power projects.
The other projects which could go ahead are located in Cambodia, Pakistan, the UAE and Vietnam
In September 2021, President Xi Jinping told the United Nations General Assembly that China would shut overseas coal projects to cut greenhouse gas emissions, but it was unclear whether existing coal plants would continue.
However, the latest guidelines by the National Development and Reform Commission recommend the reexamination of another 30 China-backed plants now under construction overseas, involving a total capacity of 30 GW, while also recommending that project developers proceed cautiously.
“This leaves options open for Chinese firms to withdraw if they have sufficient reason and manageable penalties to do so, particularly if projects are in the earlier stages of construction,” CREA said.
