China is now at the forefront of the renewable energy transition, and the One Belt One Road (OBOR) is serving as a conduit to export this expertise and technology throughout Asia.
While 75 percent of the electricity in China is still coming from coal-fired power plants, this is a state of affairs that is changing fast. The construction of at least 85 new coal-fired power plants has already been cancelled and the development and proliferation of new renewable energy sources has rapidly been taking their place.
The results from this have been revolutionary, as China is now the global leader in solar, wind, and hydro energy capacity, investing more in renewable energy each year than the U.S. and EU combined.
While 75 percent of the electricity in China is still coming from coal-fired power plants, this is a state of affairs that is changing fast. The construction of at least 85 new coal-fired power plants has already been cancelled and the development and proliferation of new renewable energy sources has rapidly been taking their place.
The results from this have been revolutionary, as China is now the global leader in solar, wind, and hydro energy capacity, investing more in renewable energy each year than the U.S. and EU combined.
In 2017, China increased this commitment by pledging to invest an additional $360 billion in renewable energy prior to 2020, and, according to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA), last year alone China pumped over $44 billion into increasing its renewable energy reach.
This model of renewables replacing coal is now being replicated throughout Asia. According to the IEEFA, 55 GW worth of new coal-fired power went online in 2016, while 165 GW of new energy capacity was renewables.
China is also expanding its renewable energy transition overseas along the routes of the Belt and Road, and has already invested $32 billion in renewable energy projects abroad.
Chinese companies currently account for roughly 60 percent of the world's solar equipment production, and firms like Longi, Hareon Solar, Tongwei, JA Solar, and Jinko Solar are rapidly expanding overseas in conjunction with the Belt and Road Initiative (BRI). Among other endeavors, Longi is currently setting up a 500 MW solar manufacturing operation in India.
However, while China is making considerable strides spreading renewable energy internationally, it must be stated here that the Belt and Road is also facilitating the spread of coal power. In 2017, China was involved in 240 coal-fired power plants in 25 of the BRI's 65 countries.
Looking for new ways to mobilize private capital for green and other low-carbon development projects, China began issuing green bonds in 2015. Hardly a year later, China was the world's leader in this market, issuing an additional $36.2 billion of green bonds — a full 39 percent of the global share.
China's green bonds are generating funds for initiatives aiming to develop and promote cleaner transportation, pollution control, conservation, recycling, and ecological protection, in addition to renewable energy.
This model of renewables replacing coal is now being replicated throughout Asia. According to the IEEFA, 55 GW worth of new coal-fired power went online in 2016, while 165 GW of new energy capacity was renewables.
China is also expanding its renewable energy transition overseas along the routes of the Belt and Road, and has already invested $32 billion in renewable energy projects abroad.
Chinese companies currently account for roughly 60 percent of the world's solar equipment production, and firms like Longi, Hareon Solar, Tongwei, JA Solar, and Jinko Solar are rapidly expanding overseas in conjunction with the Belt and Road Initiative (BRI). Among other endeavors, Longi is currently setting up a 500 MW solar manufacturing operation in India.
However, while China is making considerable strides spreading renewable energy internationally, it must be stated here that the Belt and Road is also facilitating the spread of coal power. In 2017, China was involved in 240 coal-fired power plants in 25 of the BRI's 65 countries.
Looking for new ways to mobilize private capital for green and other low-carbon development projects, China began issuing green bonds in 2015. Hardly a year later, China was the world's leader in this market, issuing an additional $36.2 billion of green bonds — a full 39 percent of the global share.
China's green bonds are generating funds for initiatives aiming to develop and promote cleaner transportation, pollution control, conservation, recycling, and ecological protection, in addition to renewable energy.
Chinese banks will be as committed to green criteria in their overseas lending activities as they have been in the domestic market, in conformity with the Green Credit Guidelines issued by the China Banking Regulatory Commission in February 2012. These guidelines specified how to integrate sustainability practices into the lending cycle and directed banks to apply them to both domestic and overseas financing.
The recommendations published by the Peoples' Bank Of China’s (PBOC) task force on establishing a green financial system should also be reassuring to those who are concerned about environmental best practice in China’s international investment. The PBOC’s report insists that the lending mechanisms supporting OBOR “cannot become channels for Chinese companies to offload outdated and polluting capacities to other Asian developing countries”.
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