China Scraps Two-Thirds of Overseas Coal Projects as Renewables Expand in UAE

Five years after China pledged at the United Nations General Assembly to stop building new coal-fired power plants overseas and increase clean energy support, state-backed entities have cancelled two-thirds of planned overseas coal capacity, according to a joint report by the Helsinki-based Centre for Research on Energy and Clean Air (CREA) and the Philippines-based People of Asia for Climate Solutions (PACS). The cancellations total 61.5 gigawatts (GW) of capacity and avoid an estimated 6.4 billion tonnes of lifetime carbon dioxide emissions.

The report finds that operational China-linked renewable power generation has expanded rapidly, now exceeding the potential power generation of cancelled coal developments in the United Arab Emirates, Brazil, and Tanzania. As of July 2026, 69.4 GW of China-linked renewable energy capacity and 3.3 GW of nuclear power are operational overseas. CREA noted that this milestone indicates how coal project cancellations are creating space for renewable energy deployment in Global South markets.

Despite progress by state-owned enterprises and policy banks, full implementation faces ongoing challenges. While 7.1 GW of China-linked coal capacity was cancelled in 2025, 3.3 GW entered construction and 20.5 GW remained in the planning pipeline without formal cancellation. In the 12 months preceding July, cancellations included 3.4 GW in Zimbabwe, 1.7 GW in Bangladesh, and 1.4 GW in Indonesia.

Researchers highlighted captive industrial coal plants financed by private Chinese enterprises as a primary loophole testing the ban. Indonesia accounts for the highest volume of operational China-linked coal capacity at 17.1 GW—largely serving off-grid mineral processing facilities—followed by Vietnam at 3.8 GW and Pakistan at 3.4 GW. CREA analyst Lizzie Frost stated that while state developers have made substantial progress, partner nations and Chinese authorities must actively retire or convert remaining planned projects before ground is broken.