• Gustavo Bernal Torres

Half of China-Backed Overseas Coal Projects Shelved

Of the 52 projects with Chinese financing announced between mid-2014 and the end of last year, 25 have been shelved and eight have been canceled.

  • Only one project - a power station located in Kalapara, Bangladesh - has gone into operation, a sign that financing costs and risks related to coal projects have surged, while clean energy like solar power have become cheaper to produce.

  • Factors driving the investment withdrawal include the rising loan spread for coal power plants as financial institutions gained more understanding of climate-related financial risks for high-emitting assets, according to the paper. Emerging carbon pricing initiatives around the world posed greater financial risks to those projects, while a volatile coal price in recent years and the fast declining cost of producing solar power also played a role.

Source: https://www.businesstimes.com.sg/energy-commodities/half-of-china-backed-overseas-coal-projects-shelved

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