Slowing the Growth of Coal Power Outside China

The report estimates that China provided USD 21-38 billion to overseas coal power projects between 2005 and 2014, with a further USD 35-72 billion planned. This financing is primarily debt used to support Chinese equipment exports and construction contracts, driven by domestic overcapacity and strategic political goals. The report analyzes China's September 2015 commitment to control public investment in high-carbon projects, estimating that up to USD 18 billion in planned investment could be discontinued, though it warns that other international lenders or export credit agencies might fill the void.

• Between 2005 and 2014, 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.
• Planned Chinese investment represents approximately 11-21% of total overseas coal finance, while other international investors and lenders provide a larger share estimated at USD 272-307 billion.
• Historically, Chinese coal power financing was concentrated in South and Southeast Asia, with India, Indonesia, and Vietnam accounting for about 60% of the total. More recent planned projects are diversifying, with Pakistan, India, and Russia representing over 50% of finance not yet closed.
• The majority of Chinese overseas coal finance consists of debt to support equipment exports and engineering, procurement, and construction (EPC) contracts, provided by policy banks (China Development Bank and China Eximbank) and commercial banks supported by Sinosure. However, equity investment in planned projects has increased to over 20% of total financing.
• Chinese finance is driven by national interests, including addressing domestic coal power overcapacity, fostering economic growth, securing natural resources, and strengthening strategic political ties, such as through the China-Pakistan Economic Corridor.
• Chinese EPC companies can outbid international competitors due to lower construction and financing costs, access to cheap domestic equipment and labor, and government support including tax reduction programs and low-rate loans from policy banks.
• Following the September 2015 commitment to control public investment in high-carbon projects, the report estimates that the Chinese government could potentially discontinue up to USD 18 billion in planned overseas coal power investments.
• There is a risk that other actors will replace Chinese finance if it is withdrawn; other export credit agencies are seen as the most likely to move aggressively into the space (84-86% potential replacement), followed by international lenders and investors (42-77%).

APA

Hervé-Mignucci, M., & Wang, X. (2015). Slowing the Growth of Coal Power Outside China. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/11/Slowing-the-Growth-of-Coal-Power-Outside-China.pdf

Chicago

Hervé-Mignucci, Morgan, and Xueying Wang. Slowing the Growth of Coal Power Outside China. Climate Policy Initiative, 2015. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/11/Slowing-the-Growth-of-Coal-Power-Outside-China.pdf.

Wikipedia

{{cite report |last1=Hervé-Mignucci |first1=Morgan |last2=Wang |first2=Xueying |title=Slowing the Growth of Coal Power Outside China |publisher=Climate Policy Initiative |date=November 2015 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2015/11/Slowing-the-Growth-of-Coal-Power-Outside-China.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hervmignucci2015slowing, author = {Hervé-Mignucci, Morgan and Wang, Xueying}, title = {{Slowing the Growth of Coal Power Outside China}}, institution = {Climate Policy Initiative}, year = {2015}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2015/11/Slowing-the-Growth-of-Coal-Power-Outside-China.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }