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Article

30 Dec 2020

Author:
Kevin Rudd, China Dialogue

China: Former Australian PM quotes example of Ghanaian environmental activist to show importance of halting coal support abroad in Beijing's bid for climate leadership

"The new geopolitics of China’s climate leadership" 11 December 2020

[...] To best navigate these newfound expectations and responsibilities, China will need to significantly bolster its short-term efforts to reduce emissions through its 2030 Nationally Determined Contribution (NDC) under the Paris Agreement, especially with regards to its future use of coal. Piecemeal steps forward in the short-term will be insufficient in the eyes of the international community. At the same time, China must also demonstrate a propensity to achieve Xi’s vision of carbon neutrality as close to 2050 as possible and start to seriously re-orient its support for carbon-intensive infrastructure overseas through its Belt and Road Initiative (BRI). [...]

The approval of a large number of new coal-fired power plants this year does not augur well for ensuring there is a green economic recovery, even with Beijing’s investment in so called “new infrastructure” such as electric vehicle charging stations and rail upgrades. Indeed, the total capacity of coal fired power generation now under development in China is larger than the remaining operating fleet in the United States.

The Belt and Road Initiative

[...] Beijing should be careful not to underestimate the extent to which this has the potential to significantly impinge the BRI – the jewel in the crown of Xi’s foreign policy – in the years ahead. Already moods are shifting in many recipient countries. The awarding of the prestigious environmental Goldman Prize to Chibeze Ezekiel for organising his fellow Ghanaians against plans for a Chinese-supported coal plant in the African nation provided a powerful example of this. And this attitudinal shift will only accelerate once additional and more accessible sources of clean energy finance become available. [...]

While the recent effort ostensibly overseen by MEE to establish a “traffic light” system for new BRI projects is to be welcome, it will require more teeth to be effective. Ultimately, the most powerful thing China could do would be to follow Japan and South Korea’s lead and halt its overseas support for coal entirely. The economic hard heads in China will find that difficult, especially as the country winds down its domestic coal sector and seeks to redeploy its human and financial capital in the sector elsewhere. But the extent to which China can at least extend many of the laws and regulations it has put in place domestically in recent years to equally apply to its overseas projects will be an important first step. [...]

Part of the following timelines

China’s 2060 carbon neutrality pledge

China's commitment to phase out overseas coal investment

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