CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

China to stop funding overseas coal-fired power plants

By Debabrata Das

02:53, 22 September 2021

China's President, Xi Jinping
China's President, Xi Jinping - Photo: Shutterstock

China will stop supporting the development of coal-fired power plants in other countries, President Xi Jinping said at the United Nations General Assembly on Wednesday.

The move will be a big hit for the funding of coal-fired plants worldwide as China is a major financier of the sector. According to a report by the International Institute of Green Finance (IIGF) in July 2021, more than 70% of all coal-fired power plants built today depend on Chinese funding.

“China will step up support for other developing countries in developing green and low carbon energy and will not build new coal-fired power projects abroad,” Xi said in a video address to the United Nations General Assembly.

China will be carbon neutral by 2060

While he provided no details regarding when the country will stop financing coal-based power plants in the developing world, the report by IIGF found that China had not funded any coal projects via its Belt and Road Initiative in the first half of 2021.

Xi called on world leaders to improve global environmental governance and “actively respond to climate change”.

XRP/USD

0.65 Price
+1.040% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

43,477.85 Price
-0.900% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Gold

2,032.56 Price
+0.320% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

70.48 Price
+1.420% 1D Chg, %
Long position overnight fee -0.0205%
Short position overnight fee -0.0014%
Overnight fee time 22:00 (UTC)
Spread 0.030

He committed to “reprieve carbon dioxide emissions” before 2030 and achieve carbon neutrality before 2060. “This requires tremendous hard work and we will make every effort to meet these goals,” Xi said.

John Kerry “delighted” with China

Soon after Xi’s remarks, John Kerry, the Special Presidential Envoy for Climate, welcomed the move. “We’ve been talking to China for quite some period of time about this. And I’m absolutely delighted to hear that President Xi has made this important decision.

It’s a great contribution. It’s a good beginning to the efforts we need to achieve success in Glasgow,” Kerry said in a statement, according to Reuters.

Read more: China, Japan and South Korea need .4trn for greening transport sector

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading