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The View | China’s pledge to stop building coal power plants abroad opens door for its renewable energy firms
- Chinese renewable energy companies need to treat the country’s climate commitments as more than just new markets and business opportunities
- As implementers of these promises and builders of the green projects, they must ensure their environmental and social impact is minimised
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At the 76th UN General Assembly, President Xi Jinping announced that “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”.
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While international climate watchers applauded the second part of the announcement, Chinese renewable energy companies are cheering the first half. An end to coal means a door opened wider for renewable energy.
China is the world’s largest producer, investor and user of renewable energy. According to data from REN21, a renewable energy think tank, almost half of the world’s new renewable energy installations last year was added in China and almost a third of renewable energy investment came from China.
China’s renewable energy industry plays a crucial role in helping the country deliver on its dual climate goals of peak emissions by 2030 and carbon neutrality by 2060.
Many companies have also been expanding overseas rapidly, moving into new markets and exploring new opportunities. In 2020, China’s overseas investment on wind, solar and hydropower overtook that on coal and other fossil fuels for the first time since the launch of the Belt and Road Initiative.
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What is China doing about climate change?
What is China doing about climate change?
Following the success of the State Grid Corporation of China and China Southern Power Grid in entering overseas markets, including Vietnam, the Philippines, Chile and Brazil, the recently created China Power Equipment Group is poised to make its global debut as the next electricity transmission and distribution equipment giant, competing with ABB, Siemens and Areva.
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