Plans for overseas coal power projects down by two-thirds

By the Editorial Team · Friday, September 25, 2026

China’s state-owned sector has largely honored its 2021 pledge to stop building and financing overseas coal plants, resulting in the cancellation of two-thirds of planned projects and preventing substantial carbon emissions. However, private Chinese companies continue to develop new coal-fired power capacity abroad, particularly in Indonesia and Africa, which could challenge the country’s climate commitments moving forward.

Five years after China pledged to halt the construction and financing of overseas coal-fired power plants, the country’s state sector has made notable progress in fulfilling this commitment, although private companies continue to develop such projects, according to a recent report by two climate research organizations.

The study, conducted by the Helsinki-based Centre for Research on Energy and Clean Air (CREA) and the Philippines-based People of Asia for Climate Solutions (PACS), reveals that two-thirds of the coal power projects planned abroad by Chinese entities five years ago have been cancelled. This amounts to a reduction of 61.5 gigawatts (GW) in capacity, which has subsequently prevented an estimated 6.4 billion tonnes of carbon dioxide emissions over the plants’ expected lifetimes.

Despite this overall decline, the report highlights that new projects are still being initiated. In the 12 months leading up to July 2026, construction began on 3.4 GW of coal power capacity in Zimbabwe, 1.7 GW in Bangladesh, and 1.4 GW in Indonesia. These developments are largely attributed to private Chinese companies, especially in Indonesia, where most of the remaining coal plants under construction are intended for off-grid power supply to mineral processing facilities and industrial zones.

The report notes that while state-owned enterprises and banks have largely aligned with Beijing’s pledge, there has been a recent slowdown in the cancellation of projects. In 2025 alone, 7.1 GW of Chinese-linked coal power capacity was cancelled, whereas 3.3 GW entered construction and 20.5 GW remained in planning stages.

Indonesia remains the country with the largest share of China-linked coal projects overseas, hosting approximately 17.1 GW of planned or ongoing capacity. Other countries with significant coal projects under Chinese influence include Vietnam, with 3.8 GW, and Pakistan, with 3.4 GW.

Chinese President Xi Jinping made the coal project commitment at the United Nations General Assembly in September 2021. This announcement marked a shift from previous years, when China heavily invested in coal plants as part of its Belt and Road Initiative, which aimed to expand international infrastructure and trade connections. Between 2014 and 2020, Chinese-backed coal plants valued at around US$160 billion were planned or announced outside China, according to data from the International Institute of Green Finance.

Following Xi’s pledge, a CREA report released in 2022 found a marked reduction in planned Chinese coal projects abroad. Additionally, some countries that had once been targets for coal expansion have since seen a pivot toward renewable energy investments funded by Chinese entities. The dual research study emphasized that China-linked renewable energy generation operating in Brazil, Tanzania, and the United Arab Emirates has already surpassed the potential output of cancelled coal projects in those countries.

The organizations behind the report underscored that while progress has been made, ongoing coal projects by private Chinese firms risk undermining the 2021 commitment. They suggested the cancellations free up opportunities for renewable energy development, benefiting both China and its Global South partners economically and environmentally.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.