China will no longer fund overseas coal

President Xi of China at official event in front of red curtain (China coal)
Image: Shutterstock

Chinese President Xi Jinping has announced China will stop funding coal projects overseas in an announcement at the UN General Assembly.

Mr Xi’s announcement comes after US President Joe Biden promised to double Washington’s contribution to countries hardest hit by climate change.

China is still investing in coal, reducing the impact of Mr Xi’s commitment, but it is by far the largest funder of coal projects in developing countries such as Indonesia, Vietnam and Bangladesh as it goes on a global infrastructure-building blitz with its Belt and Road Initiative, according to ABC News.

Mr Xi has promised to accelerate efforts for China, the world’s largest producer of emissions, to go carbon neutral by 2060.

Related article: UN urges Australia to speed up transition from coal

“This requires tremendous hard work and we will make every effort to meet these goals,” he told the General Assembly.

US climate envoy John Kerry responded to President Xi’s announcement by saying he was “absolutely delighted” by the news.

China’s announcement follows similar moves by South Korea and Japan, the only other nations that offered significant funds for coal projects.

According to ABC News, China brought 38.4GW of new coal-fired power online in 2020—more than three times what was brought into operation globally.

In addition, the state-run Bank of China is the largest single financier of coal projects, backing $US35 billion in coal power development since the Paris climate agreement was signed in 2015.

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