Chinese President Xi Jinping has said China will no longer fund the construction of new coal-fired power plant projects abroad, surprising the world on the climate for the second year in a row at the United Nations General Assembly.
China has supported coal projects in developing countries, including Indonesia and Bangladesh, and has come under heavy diplomatic pressure to end funding to help the world meet the goals of the Paris Agreement on climate aimed at reducing carbon emissions.
Xi’s announcement on Tuesday follows similar steps taken by South Korea and Japan earlier this year.
“China will step up support to other developing countries in developing green and low-carbon energy, and will not build new overseas coal-fired power projects,” Xi said in a video speech. pre-recorded at the annual meeting of the United Nations.
The pledge came hours after US President Joe Biden announced a plan to double financial aid to the poorest countries to $ 11.4 billion by 2024 to help those countries transition to an energy cleaner and to cope with the worsening effects of global warming.
Although Xi’s speech was sparse, the initiatives could give some impetus to COP26, the main global climate talks set to begin in the Scottish city of Glasgow in late October.
“This is an absolutely defining moment,” said Xinyue Ma, energy development finance expert at Boston University’s Global Development Policy Center.
With a view to the historic Paris climate agreement in 2015, a joint US-Chinese agreement has made it possible to relaunch fruitful negotiations.
US climate envoy John Kerry quickly hailed Xi’s announcement, calling it “a great contribution” and a good basis for success in Glasgow.
“We’ve been in discussions with China for some time about this. And I am absolutely delighted to hear that President Xi has made this important decision, ”Kerry said in a statement.
Alok Sharma, the British minister leading COP26, also welcomed Xi’s announcement.
“Clearly the writing is on the wall for coal power. I welcome President Xi’s commitment to stop building new coal projects abroad – a key topic of my discussions during my visit to China, ”he said on Twitter.
“A real game changer”
Climate activists also praised the commitment of the world’s largest emitter of greenhouse gases.
From 2013 to 2019, data shows that China was financing 13% of the coal-fired power capacity built outside of China – “by far the largest public financier,” according to Kevin Gallagher, who heads the center at the University of Boston.
Climate advocacy movement 350.org called Xi’s announcement “huge,” saying it could “be a game-changer” depending on when it goes into effect.
Helen Mountford, vice president for climate and economics at the World Resources Institute, said it was “a historic turning point away from the world’s dirtiest fossil fuel.”
“China’s commitment shows that the fire hose of international public financing of coal is being cut,” she said, but noted that Beijing continued to invest in coal in her country. .
China put 38.4 gigawatts of new coal-fired power into service last year, more than three times what has been put into service globally.
In a letter released earlier this year, non-government groups said the state-run Bank of China was the largest funder of coal projects, providing $ 35 billion since the Paris agreement. on the climate.
Xi reiterated last year’s promises that China will reach peak carbon dioxide emissions by 2030 and carbon neutrality by 2060.
Some experts criticized the targets as not being ambitious enough, although the pledges allowed Beijing to claim a high moral stance on the issue after then-US President Donald Trump, who called climate change of “hoax”, withdrew from the Paris climate agreement.
One of Biden’s first moves after taking office in January was to bring the United States back to the Paris Agreement.
“China was the last man standing. If there is no public funding for coal from China, there is little or no global expansion of coal, ”said Justin Guay, director of global climate strategy at the Sunrise Project, an advocacy group. for a global transition from coal and fossil fuels, on Xi’s promise. .
Guterres praised Xi’s decision on coal and Biden’s commitment to helping developing countries cope with climate change.
“Accelerating the global phase-out of coal is the most important step in keeping the Paris Agreement’s 1.5-degree target within reach,” he said in a statement.