With China’s withdrawal from overseas coal, the pipeline for new coal in Asia could drop to 22 GW — all of which will likely not be built

This briefing by Global Energy Monitor analyzes the impact of China's pledge to stop building new coal-fired power projects abroad on the Asian energy pipeline. It argues that Chinese withdrawal, combined with similar pledges from Japan and South Korea, could reduce the pre-construction coal pipeline in Asia (excluding China and India) to 22 GW, most of which is unlikely to be completed due to financing obstacles.

• China's pledge to stop building new coal-fired power projects abroad could remove two-thirds of the planned pre-construction coal capacity in Asian countries outside of China and India. Prior to this announcement, over 65 GW were planned; the withdrawal could leave only 22 GW remaining across eight countries.
• The remaining 22 GW of planned coal capacity is highly unlikely to be built because less than 30% has secured financing. In 2021, no coal power station in the pre-construction stage reached financial close, a sharp decline from the US$11 billion invested in 2020 and US$10 billion in 2019.
• Cancelling the remaining 22 GW of planned coal capacity would avoid approximately 103 million tons of annual CO2 emissions, which is more than the total CO2 emissions of Bangladesh in 2019. It would also save over US$27 billion in capital costs.
• The impact of China's withdrawal is most severe in Laos, Bangladesh, and Cambodia. In Cambodia, the only remaining planned project, the 700 MW Botum Sakor power station, would be cancelled. In Laos, 85% of the coal pipeline would likely be affected.
• In Indonesia, a significant portion of the coal pipeline is linked to the nickel-refining industry. Out of 12 GW of planned coal-fired power, 3.58 GW is intended for nickel refining, following a 2014 ban on unprocessed ore exports that attracted Chinese investment.
• Vietnam has a substantial coal pipeline but low implementation rates. While the draft Power Development Plan (PDP8) allocated over 30 GW of coal plants for 2021-2040, the country signed the Global Coal to Clean Power Transition Statement at COP26 to stop permitting and building new coal plants.
• Pakistan's coal expansion, heavily supported by the China-Pakistan Economic Corridor (CPEC), has led to power overcapacity and a financial crisis, with power system debt reaching US$16 billion in the first half of 2021.

APA

Global Energy Monitor (2021). With China’s withdrawal from overseas coal, the pipeline for new coal in Asia could drop to 22 GW — all of which will likely not be built. https://globalenergymonitor.org/sites/default/files/migration/reports/Briefing_Chinas-withdrawal-from-overseas-coal-potential-drops-pipeline-to-22-GW_CREAGEM_Final_11.pdf

Chicago

Global Energy Monitor. With China’s withdrawal from overseas coal, the pipeline for new coal in Asia could drop to 22 GW — all of which will likely not be built. 2021. https://globalenergymonitor.org/sites/default/files/migration/reports/Briefing_Chinas-withdrawal-from-overseas-coal-potential-drops-pipeline-to-22-GW_CREAGEM_Final_11.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=With China’s withdrawal from overseas coal, the pipeline for new coal in Asia could drop to 22 GW — all of which will likely not be built |date=November 2021 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/Briefing_Chinas-withdrawal-from-overseas-coal-potential-drops-pipeline-to-22-GW_CREAGEM_Final_11.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2021with, author = {{Global Energy Monitor}}, title = {{With China’s withdrawal from overseas coal, the pipeline for new coal in Asia could drop to 22 GW — all of which will likely not be built}}, institution = {Global Energy Monitor}, year = {2021}, month = nov, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/Briefing_Chinas-withdrawal-from-overseas-coal-potential-drops-pipeline-to-22-GW_CREAGEM_Final_11.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }