China’s Unyielding Coal Investments: A BRICS Conundrum

Despite pledges to halt overseas coal financing, China continues to invest in new coal power plants in Indonesia, primarily to support nickel smelters. Chinese involvement signifies a contradiction in global climate efforts, especially among BRICS nations where fossil fuel dependency remains high amid rising energy demands.

Despite China's 2021 promise to stop financing overseas coal projects, Chinese firms are actively involved in constructing new coal-fired power plants in Indonesia, particularly to support nickel smelters. A report by Global Energy Monitor highlights China's involvement in 7.7 gigawatts of coal power construction in the country.

The BRICS bloc, encompassing nations such as Brazil, Russia, India, and China, along with newer members like Indonesia, accounts for a substantial portion of the global economy and carbon emissions. While renewable energy has surged in Brazil, India, and China, new BRICS partners rely heavily on fossil fuels, often with support from China.

A concerning trend, identified by GEM, reveals that 62% of the new generation capacity in 10 BRICS countries is financed and constructed by Chinese state-owned enterprises. Experts, including GEM's James Norman, warn that reliance on coal, oil, and gas poses environmental risks. Climate action will be a key focus for BRICS leaders at an upcoming meeting in Brazil ahead of COP 30.