China Cancels 67% of Planned Overseas Coal Projects Since 2021
China has cancelled 67% of the overseas coal capacity planned in 2021, but private projects and energy-security concerns continue to keep coal investments alive.
China has cancelled 67% of the overseas coal power capacity planned when President Xi Jinping pledged in 2021 to stop building new coal-fired power plants abroad. A new assessment by the Centre for Research on Energy and Clean Air and People of Asia for Climate Solutions says 61.5 gigawatts of planned capacity has been cancelled, potentially avoiding 6.4 billion tonnes of lifetime carbon dioxide emissions.
However, the report says China’s overseas coal shift is not complete. Around 20.5 GW of China-linked coal capacity remains in planning, while 3.3 GW has entered construction since the previous assessment. Private companies and captive coal plants serving industrial projects have also created gaps in the original pledge. Indonesia remains a major destination for such investments.
The issue is particularly significant in Southeast Asia, where energy security concerns and rising demand continue to support coal use. The International Energy Agency estimates the region will account for around 20% of global energy demand growth through 2035 under current policies, while clean energy expansion may not be fast enough to displace fossil fuels.
China’s overseas energy strategy is therefore showing two contrasting trends: a major reduction in planned coal projects alongside continued investment in renewable energy, while energy-security pressures keep coal relevant in parts of Asia.
Five years after Xi’s pledge, the numbers show substantial progress, but the remaining projects suggest the coal chapter is still refusing to end quietly.
