Five years after Chinese President Xi Jinping pledged to halt new overseas coal financing, China has canceled 67% of its planned coal power capacity abroad, according to a report released in September 2026 by the Centre for Research on Energy and Clean Air (CREA) and the People of Asia for Climate Solutions (PACS). The canceled projects total 61.5 gigawatts, avoiding an estimated 6.4 billion tonnes of lifetime carbon dioxide emissions.
The findings were published to coincide with the United Nations General Assembly and New York Climate Week. While the rollbacks mark a significant shift in Beijing’s international climate strategy, analysts point out that regulatory loopholes and energy security pressures continue to test the durability of the global coal moratorium.
Implementation Gaps and Private Investments
Despite the cancellation of two-thirds of the overseas pipeline, the moratorium has encountered implementation hurdles. CREA and PACS tracking data show that 3.3 gigawatts of China-linked coal power capacity entered construction over the prior year, while another 20.5 gigawatts remains in planning without an official cancellation. These active pipelines represent roughly 2.8 billion tonnes of potential lifetime carbon dioxide emissions.
Off-grid captive coal power plants, frequently funded by private Chinese companies to power mineral-processing and industrial parks in Indonesia, represent a primary loophole. According to the CREA and PACS report, 60% of active captive units and 42% of those under construction have advanced since the 2021 pledge.
Indonesia hosts the largest share of operational Chinese-linked coal projects at 17.1 gigawatts, followed by Vietnam at 3.8 gigawatts and Pakistan at 3.4 gigawatts, according to the research group data.
Regional Energy Shocks in Southeast Asia
Geopolitical conflicts, including the Russia-Ukraine war and subsequent energy disruptions involving Middle Eastern supply routes and the closure of the Strait of Hormuz, placed heavy pressure on energy-hungry Southeast Asian economies. As a region accounting for a fifth of global energy demand, several nations underwent energy triage and increased short-term fossil fuel consumption to maintain grid stability.
Li Shuo, director of the Asia Society Policy Institute’s China Climate Hub, noted that the intense focus on securing reliable energy supplies risks triggering a secondary wave of coal reliance. “The growing desire among countries in Southeast Asia to secure reliable energy supplies could bring about another round of coal fever,” Li said, adding that these pressures “will continue to test the resolve behind the coal moratorium.”
Expansion of Overseas Renewables
Concurrently, China’s clean energy footprint abroad has expanded significantly. As of July 2026, operational China-linked renewable energy projects overseas reached 69.4 gigawatts, surpassing the generation capacity of canceled coal projects in regions like Brazil, Tanzania, and the United Arab Emirates. An additional 100.5 gigawatts of renewables are under construction.
These developments align with China’s 15th Five-Year Plan, published in March 2026, which outlines goals to position the country as a leader in global climate governance by supplying affordable clean-energy technologies.
Frequently Asked Questions
When did China announce its overseas coal ban?
Chinese President Xi Jinping announced the pledge during his address to the U.N. General Assembly in September 2021.
How much coal capacity has been canceled?
According to CREA and PACS, China has canceled 67% of its planned overseas coal capacity—totaling 61.5 gigawatts—avoiding an estimated 6.4 billion tonnes of lifetime CO2 emissions.
What are the main loopholes in the coal ban?
Private Chinese companies have continued investing in off-grid captive coal plants—primarily tied to industrial and mineral-processing parks in Indonesia—which fall outside traditional state-backed utility frameworks.
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