The FT reports that China’s Embassy in Bangladesh has informed the local Ministry of Finance that it will not fund coalmines and polluting power plants. Is this a significant step in a new direction – making Belt + Road Initiative pollution free?
The Institute for Energy Economics and Financial Analysis concludes that it is the first indication that China is translating promises of a green BRI into action on the ground.
Vietnam was the largest recipient of overseas energy investment from China in 2020 and Vietnam’s state media reported in February 2021 that ICBC, the Chinese commercial bank and state utility Southern Grid are in discussions to take over financing for the 2GW Vinh Tan 3 power plant after Mitsubishi withdrew over climate change concerns.
BRI is central to determine whether developing countries can expand their economies cleanly and without diluting the Paris Accords of keeping to global warming limits. China’s Ministry of Ecology + Environment called in December 2020 for a negative list of polluting projects in order to promote environmental achievement.