China's Surprising Coal Drift: Unkept Promises and New Investments

Despite pledging to halt overseas coal project financing, Chinese firms continue constructing coal-fired plants in Indonesia, crucial for nickel smelters. This undermines global climate goals, as China backs 88% of 25 GW coal capacity in BRICS nations. Renewables are side-lined amid soaring energy demand.

Chinese companies are continuing to build coal-fired power plants in Indonesia, despite a 2021 commitment to cease such financing abroad, according to a recent analysis of energy investments in BRICS nations.

The Global Energy Monitor think tank reports that China is actively constructing 7.7 gigawatts of new coal-fired power, predominantly for Indonesia's nickel smelting operations. This development occurs even as BRICS, founded by Brazil, Russia, India, and China in 2009, now accounts for about a quarter of the world's economy and half the global carbon emissions.

While Brazil, India, and China have propelled renewables to account for more than half of the bloc's energy mix, the newest BRICS members, including Indonesia, still depend heavily on fossil fuels, largely facilitated by Chinese enterprises. Global Energy Monitor stresses the risk of misguiding these countries down a fossil-fuels path, with considerable Chinese support extending to 88% of the ongoing coal power constructions.

(With inputs from agencies.)