Thread by @BelindaSchaepe

This week’s #IPCCReport reiterated that there’s simply no room for new #fossilfuel infrastructure if we’re to keep warming below 1.5C. New guidance by #China's state planner sheds light on 🇨🇳 pledge to stop building #coal projects overseas🧵
@oykusenlen @leonickroberts @byfordt

Latest data suggests countries outside 🇨🇳 are considering over 124GW new #coal power projects,much of which was expected to rely on 🇨🇳 public finance. Since Xi’s announcement at #UNGA 2021, the lack of clarity or follow-up has created some confusion bit.ly/3uYf0TA

New guidance by #China’s state planner #NDRC has now shed some light on what it would look like for China to ‘stop further construction’ of coal power plants overseas. There are 3 parts to this new guidance 👇 bit.ly/3jfPp32

1⃣ is the most exciting: New coal power projects shall ‘stop completely’. This assertive language should seal the fate of the 55GW of 🇨🇳financed coal projects still in pre-construction stage - equivalent to the coal fleets of 🇵🇱 & 🇦🇺combined, and almost 1/2 of 🌍 coal pipeline

If all the coal projects at pre-construction stages get scrapped due to lack of finance, this could leave #Niger🇳🇪, #Tanzania🇹🇿, and #Malawi🇲🇼 entirely coal-free, and 4 additional countries without a project pipeline

2⃣Plants under construction (~30GW) should go ahead ‘steadily and cautiously’. It’s not clear whether this only covers projects that have entered construction, or also includes those that have secured the necessary permits and financing backing

3⃣For operational plants, ‘green and low-carbon development’ should be facilitated with ‘clean and efficient use of coal’ measures including emissions control tech & CCUS. This @CREACleanAir study looks into air emission standards for 🇨🇳 plants overseas bit.ly/3rb8oQR

A number of questions do remain. Do the new restrictions cover #coal power plants where Chinese companies are involved in the engineering/construction, but no Chinese finance is involved? How about captive/off-grid plants that are developed for #industrial use?

This is particularly true in #Indonesia🇮🇩, where large coal-powered industrial projects for nickel and steel production have been approved recently, risking undermining China’s pledge and Indonesia’s #climate targets bit.ly/3NWCu47

Beyond coal power projects, the guidance mentions for the 1. time #steel as a specific area where 🇨🇳wants to explore green development cooperation opportunities within the #BRI - an important signal as the global steel sector makes up 7% of GHG emissions bit.ly/3iPmGBU

Overall, some more clarity on 🇨🇳overseas finance for coal but some key questions remain unanswered. A key outcome for this year would also be a Chinese commitment for a clear numerical target on renewable energy finance in #BRI countries