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China Cancels Overseas Coal Projects as Renewable Energy Expands in UAE

A joint study by CREA and PACS shows Chinese state-backed entities have cancelled two-thirds of planned overseas coal projects since 2021. Meanwhile, China-linked overseas operational renewable capacity reached 69.4 gigawatts by July 2026, with clean generation surpassing cancelled coal capacity in the UAE, Brazil, and Tanzania.

Low-angle view of modern corporate skyscrapers and glass towers against an overcast sky

Chinese state-backed entities have scrapped two-thirds of planned overseas coal power projects since 2021, according to a joint study published by the Centre for Research on Energy and Clean Air (CREA) and PACS. The cancellations removed 61.5 gigawatts of potential coal power capacity and prevented an estimated 6.4 billion tonnes of lifetime carbon emissions.

In parallel with the reduction in coal ventures, China-linked operational renewable energy capacity abroad expanded to 69.4 gigawatts by July 2026. The study noted that clean energy generation linked to Chinese developers grew rapidly over this period.

The report highlighted that the output from China-linked green power projects has now surpassed the capacity of cancelled coal projects in countries including the United Arab Emirates, Brazil, and Tanzania. Researchers added that Chinese clean-energy developers continue to build strategic positions throughout the Gulf region to support domestic decarbonization targets.

Sources

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