Abstract

This short essay quantifies the level of Chinese overseas development finance in the global energy sector, denotes the financing model deployed by the Chinese in these transactions, and evaluates China’s potential for financing a transition toward a clean energy future. We find that China’s two development banks – the China Development Bank and the Export-Import Bank of China provide more development finance than the World Bank and its counterparts, and have a more flexible business model for financing cleaner energy. That said, the current mix of Chinese energy finance is in carbon intensive projects. China’s model holds out hope, and makes China poised to lead.

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