Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance

This report by the Climate Policy Initiative analyzes the scale and distribution of Chinese finance for overseas coal power projects, highlighting China's role as a major provider of finance and the potential impact of its 2015 commitment to control public investment in high-carbon overseas projects.

• Between 2005 and 2015, China provided an estimated USD 21-38 billion in finance for overseas coal power projects, with an additional USD 35-72 billion planned for new projects prior to its September 2015 commitment to control public investment in high-carbon overseas projects.
• Chinese finance for overseas coal power has historically been concentrated in South Asia and Southeast Asia, specifically India, Indonesia, and Vietnam, which together account for approximately 60% of the total. More recent planned projects are diversifying toward Pakistan, India, and Russia, which represent over 50% of Chinese overseas coal finance that has not yet reached financial closure.
• The majority of Chinese overseas coal finance has consisted of debt linked to engineering, procurement, and construction contracts and equipment exports, provided by commercial banks and policy banks such as China Eximbank and China Development Bank, often supported by Sinosure. However, for projects in the planning stage, equity now exceeds 20% of total financing, indicating increased investment by Chinese state-owned enterprises.
• The Chinese government uses public finance and guarantees to help domestic companies secure a larger share of the overseas coal power market and address domestic overcapacity and air pollution. Of the USD 35-72 billion in planned investments, the report estimates the Chinese government could potentially stop up to USD 18 billion in investments following its commitment.
• While China is a major provider, other international investors and lenders played a larger role in overseas coal finance, with estimated investments of USD 272-307 billion, compared to the USD 35-72 billion (11-21% of total) attributed to China. Local investment for coal power is estimated at USD 218 billion.

APA

Climate Policy Initiative (2015). Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance. https://www.climatepolicyinitiative.org/publication/slowing-the-growth-of-coal-power-outside-china-the-role-of-chinese-finance/

Chicago

Climate Policy Initiative. Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance. 2015. https://www.climatepolicyinitiative.org/publication/slowing-the-growth-of-coal-power-outside-china-the-role-of-chinese-finance/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance |date=25 November 2015 |url=https://www.climatepolicyinitiative.org/publication/slowing-the-growth-of-coal-power-outside-china-the-role-of-chinese-finance/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2015slowing, author = {{Climate Policy Initiative}}, title = {{Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance}}, institution = {Climate Policy Initiative}, year = {2015}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/slowing-the-growth-of-coal-power-outside-china-the-role-of-chinese-finance/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }