The number of Chinese-backed coal projects under construction abroad has increased this year, according to a new report, even as Beijing itself gradually reduces its reliance on the fossil fuel.
Why It Matters
China remains by far the world’s largest emitter of carbon emissions, accounting for more than 30 percent of the planet-warming gases last year, according to United Nations figures. The United States came in second, contributing roughly 12 percent.
China is a world leader in the production, deployment, and export of green energy technologies—driven by its vast industrial capacity and state-directed policies. Beijing has also sought to position itself as a leader in the global effort to cut emissions.
Newsweek reached out to China’s National Energy Administration by email with a request for comment.
What To Know
In 2020, President Xi Jinping announced China would reach peak carbon emissions before the end of the decade and achieve carbon neutrality by 2060. As part of these efforts, the country pledged a halt to the construction of new Chinese-financed coal power projects overseas.
There has been some progress on this front. For one, cancellations are up. In the five years since Xi’s pledge, Chinese-funded overseas coal projects totaling 59.3 gigawatts (GW) of coal-fueled power have been canceled.
That’s the equivalent of 6.1 billion metric tons (6.72 billion tons) of carbon dioxide emissions avoided over the lifetime of those plants, according to a report released Monday by the Centre for Research on Energy and Clean Air (CREA) and People of Asia for Climate Solutions.
Meanwhile, projects still in the planning stage have also declined. As of July 2025, those remaining had a total capacity of 31.4 GW, down 37 percent from 2024.
Yet while construction has slowed over the past year, it does continue. More overseas coal projects are in operation, with a total increase of 4.1 GW in capacity since last year.
And 14 more are under construction, expected to generate an additional 12 GW upon completion. Most of these are “captive grid” projects—plants built by private Chinese firms for industrial use—and primarily in developing countries such as India, Zambia, Zimbabwe, and Laos.
What People Are Saying
The authors of the report wrote: “This loophole casts a growing shadow over the progress made in ending China’s overseas coal investments.”
Guo Jiakun, a spokesperson for China’s Foreign Ministry, told reporters in February: “China has always been a doer in climate response and is firmly committed to green and low-carbon development…We will continue our effort of honoring the pledged goals on carbon peak and carbon neutrality in our own way and at our own speed.”
What Happens Next
China is likely to continue trending downward in its reliance on coal. In the first half of this year, the proportion of electricity generated from coal dropped to a historic low of 51 percent, according to CREA researchers.
However, the country still continues to build coal plants on a massive scale within its borders. Last year alone, construction began on 94.5 GW of new coal-fired capacity—the most in any year since 2015, according to data from the Global Energy Monitor.
A recent survey of experts conducted jointly by CREA and the International Society for Energy Transition Studies found that 28 percent are confident China will meet its 2030 emissions target, with 2028 emerging as the year a majority of respondents believe fossil fuel use will peak.
