Stepping away from carbon-intensive power systems and investing in renewable technologies is critical to decarbonizing the global power sector and reducing global climate change.
Stepping away from carbon-intensive power systems and investing in renewable technologies is critical to decarbonizing the global power sector and reducing global climate change. But the three countries dominating overseas bilateral finance in the power generation sector — China, Japan, and the United States — continue to fund fossil fuel power generation.
A previous study led by Princeton University researchers found China to be the largest public financier of overseas power plants, particularly coal plants. Now, in a follow-up analysis, they report that Japan and the United States follow closely behind, supporting mostly gas and coal power overseas.
In accordance with the Paris Climate Agreement, the global economy needs to rapidly forgo its carbon dependence and approach net-zero carbon emissions by 2050. National targets, like China’s dedication to domestic carbon neutrality by 2060 and Japanese and U.S. carbon neutrality goals by 2050, are helping guide the world away from carbon-intensive technologies.
However, China has not yet formulated any policy to restrict overseas finance for fossil fuel technologies. Although the U.S. and Japan have agreed to end public finance for overseas coal plants, they have no policies restricting public finance for overseas gas plants or private finance for coal, gas, or other types of fossil fuel plants. Instead, these countries continue to fund fossil fuel reliance in developing countries through bilateral finance.
Read more at Princeton University, Woodrow Wilson School of Public and International Affairs
Image: A previous study led by Princeton University researchers found China to be the largest public financier of overseas power plants, particularly coal plants. Now, in a follow-up analysis, they report that Japan and the United States follow closely behind, supporting mostly gas and coal power overseas. (Credit: Egan Jimenez, Princeton University)
