It’s been called a turning point for the planet and the beginning of the end of call president Xi Jinping has said China will stop funding coal-fired power plants abroad. He made the announcement in a pre-recorded message to the U.n general assembly in New York. China will strive to peak Carbon Dioxide emissions before 2030 and achieve Carbon neutrality before 2060. This requires tremendous hard work and they will make every effort to meet these goals. China will step up support for other developing countries in developing green and low carbon energy and will not build new coal-fired power projects abroad. Beijing is the only significant funder of overseas gold left in the world. It finances some 13 of coal-fired capacity outside of China. Now among the countries in Asia receiving funding are Indonesia, Vietnam, Pakistan, India and Bangladesh.
It’s indeed a very significant announcement and it’s a step forward in China’s climate policy and it shows that yet again. The ties are turning against core power internationally. So at the beginning of the year. China, South Korea and Japan were still major financier of co-power projects abroad and internationally and over the course of the year the dominoes fell one by one with Japan and South Korea pledging that they would no longer use public money to finance coal power plants overseas. China has obviously made the same announcement last night and now China joins the ranks of these major financials committed to an end to call which created a great momentum for the classical climate summit in coming November.
So the significance about this announcement is that it would dry up co-finance internationally because a lot of the projects. For example in Southeast Asia is being funded by Chinese Capital and a lot of time. This Capital is being used to unlock the risk of these projects which will then bring in more private investors into these projects. So with this announcement we will be seeing an end to a lot of projects in 20 countries which adds up to about like 40 gigawatts of core power which is equivalent to the size of the coal power fleet in the entire of Germany. So this is how significant this is.