Abstract
China has played a significant role in enabling overseas coal-fired power plant development through provision of capital and construction services. Following Xi Jinping’s announcement in September 2021 that China would no longer build new coal-fired power projects abroad, the potential scope of affected capacity remains unclear. This perspective article estimates the range of potentially affected coal plants, showing that construction services without accompanying Chinese finance support more overseas coal-fired generating capacity than financial arrangements. Furthermore, this article discusses four important areas for energy transition policy focus: the outsized role of the non-Chinese private sector in supporting recent coal power development, China’s domestic coal pipeline, the need for early retirement of new coal plants, and mechanisms for a transition of foregone coal support to renewable energy.
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