(Bloomberg) -- Chinese firms and banks continue to support the expansion of coal power overseas, three years after President Xi Jinping promised to end the practice, according to new research.
Some 8.6 gigawatts of previously unannounced Chinese-backed coal-fired power plants have entered construction or the pre-permitting phase in the past year in places like Southeast Asia and Africa, the Centre for Research on Energy and Clean Air said in a report on Tuesday.
Xi’s announcement in September 2021 that China would stop building new coal-fired power projects abroad was thought to be a major step toward ending international funding for the dirtiest fossil fuel. While it has been successful in canceling about 43 gigawatts of new projects, another 26 gigawatts of plants underway at the time have already come online.
Nearly 50 gigawatts more are still in the pipeline, with the potential to spew over 5 billion tons of carbon dioxide into the atmosphere by 2050. That’s more than the emissions produced by the whole of the European Union in a single year.
While some of the projects that have come to light in the past year are utility power plants that clearly violate Xi’s pledge, many are captive generators built specifically for industrial processes, such as at metals smelting, said Daniel Nesan, the report’s author.
“New coal projects continue to emerge, revealing gaps in the enforcement of China’s pledge, particularly in captive power projects, which exploit a gray area in the pledge,” Nesan said.
On the Wire
The sharper-than-expected slowdown in China’s trade in September suggests both external and domestic demand weakened, said Bloomberg Economics. That may have been a factor motivating decisions to draw up a stimulus package near the end of the month.
Caixin reported that Beijing is considering issuing 6 trillion yuan ($846 billion) in ultra-long special treasury bonds over three years to support growth. If confirmed, it would help put a floor under the economy but may not be enough for China’s “whatever-it-takes” moment.
Chinese steel exports in September hit their highest level since 2016, in a surge that risks stoking trade tensions as the top producer offloads its surplus to the rest of the world.
This Week’s Diary
(All times Beijing unless noted.)
Tuesday, Oct. 15:
- China to release monthly medium-term lending rate by Oct. 25
- OilChem holds webcast on China polyethylene market’s 4Q outlook, 14:00
Wednesday, Oct. 16:
- China Wind Power conference in Beijing, day 1
- SMM Metal Industry conference in Xining, Qinghai, day 1
- CCTD’s weekly online briefing on Chinese coal, 15:00
Thursday, Oct. 17:
- Chongqing gas exchange holds forum in Beijing, day 1
- China Wind Power conference in Beijing, day 2
- SMM Metal Industry conference in Xining, Qinghai, day 2
Friday, Oct. 18:
- China home prices for September, 09:30
- China industrial output for Sept., including steel & aluminum; coal, gas & power generation; and crude oil & refining. 10:00
- Retail sales, fixed assets investment, property investment, residential sales, jobless rate
- 3Q GDP
- 3Q pork output and inventory
- Retail sales, fixed assets investment, property investment, residential sales, jobless rate
- China’s 2nd batch of Sept. trade data, including agricultural imports; LNG & pipeline gas imports; oil products trade breakdown; alumina, copper and rare-earth product exports; bauxite, steel & aluminum product imports
- China’s weekly iron ore port stockpiles
- Shanghai exchange weekly commodities inventory, ~15:00
- Chongqing gas exchange holds forum in Beijing, day 2
- China Wind Power conference in Beijing, day 3
- SMM Metal Industry conference in Xining, Qinghai, day 3
- EARNINGS: Zijin Mining, CATL, Huayou Cobalt
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