The China Development Bank
(CDB)
and China Export Import Bank
(CHEXIM),
loaned over $251 billion
(in US dollars)
to overseas energy
sector projects
from 2000 to 2018.
Mainly for coal (45.2%)
and hydro (33.7%) power.
Just 2.3% went to
wind and solar projects,
even though China is the
world’s leading
manufacturer of
wind and solar power
generation equipment.
In 2017,
CBD and CHEXIM
financed about 40%
of total installed wind
and solar power in China.
But outside of China,
the two banks’
seem to be avoiding
renewable energy
projects.
The banks claim
they don't make
energy project
decisions.
Countries that
approach them
usually want loans
for industrial projects.
They avoid renewables
because of intermittent,
expensive energy, and
they tend to require
government subsidies
too.
The world is off track
on the Paris Agreement
climate commitments.
China, the world’s solar
and wind power leader,
and it's two policy banks,
could play a critical role,
but they are not.