China takes a key role in the realization of international sustainability goals and the global climate treaty. At the same time, Chinese banks – as indeed other development banks such as the World Bank - continue to provide loans for climate-damaging fossil projects. In particular, China’s role in this context is deeply divided.
In recent years, China has made enormous progress in the restructuring of its energy systems:
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Renewable energy sources are promoted and given strong financial support.
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Significant reduction of national fossil energy by the government. Plans in 2017 for new construction of 100 coal-fired power plants are cancelled.
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20% of primary energy to be generated from non-fossil fuels by 2030 – however, this also includes dams and nuclear energy.
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China intends to reduce its carbon emissions in relation to its economic output by 60 %
Coal: Undesirable in China, promoted abroad
China unfortunately does not apply the national change to its gigantic influence as an international financier. While climate protection progresses nationally, China continues to make massive investments – also within the frame of the Belt and Road Initiative (Silk Road Economic Belt) – in dirty fossil projects.
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240 new coal-fired power plants are to be built along the “Silk Road Economic Belt”
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In Pakistan alone, energy projects will be financed by $ 33 billion, the major part being invested in coal-fired power plants. Pakistan has large coal stocks, but hardly any power plants. The billion dollar credits are either processed through Pakistan supplying electricity to China, or, in the case of payment difficulties, power plant shares being taken over by Chinese firms.
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In Bangladesh, Chinese loans flow into the construction of coal-fired power plants with a capacity of 40.000 megawatts. In comparison: Bangladesh’s entire energy capacity was 15.300 megawatts in January 2017.
But apart from the “Silk Road Economic Belt”, Chinese banks belong to the major sponsors of coal-fired power plants worldwide, for example in Tanzania, Mongolia, Egypt, Pakistan and Zimbabwe. This contradicts the leading role in climate protection which China would like to assume at the side of Europe, after the US left the Paris Climate Agreement.
