The Chinese government provides enormous amounts of capital for projects outside China’s borders, including power plants, roads and factories. These amounts are likely to grow in the years ahead, in part due to the Belt and Road Initiative. Much of this financing is provided through national policy banks, such as the China Development Bank (CDB) and Export- Import Bank of China (China ExIm), and multilateral development banks, such as the Asia Infrastructure Investment Bank (AIIB) and New Development Bank (NDB or BRICS Bank).
The climate impacts of Chinese external financing are significant.1 This chapter provides background on the Belt and Road Initiative, China’s four main external financing institutions, with a focus on their climate policies and impacts, and China's role in coal-fired plants abroad.
1. Kelly Sims Gallagher, “The Carbon Consequences of China’s Overseas Investments in Coal,” The Fletcher School, Tufts University (2016), https://sites.tufts.edu/cierp/files/2017/11/CIERPpb_ChinaCoal_HiRes.pdf; Kevin Gallagher, Rohini Kamal and Yongzhong Wang, “Fueling Growth and Financing Risk: The benefits and risks of China’s development finance in the global energy sector,” Boston University (May 2016), https://www.bu.edu/ pardeeschool/files/2016/05/Fueling-Growth.FINAL_.version.pdf; John Mathews and Hao Tan, “China’s new Silk Road: is it black or green?,” Energy Post (April 24, 2017), http://energypost.eu/chinas-new-silk-road-will-it- contribute-to-export-of-the-black-fossil-fueled-economy/.