China’s Coal Funding Pledge Faces Loopholes as Global Climate Goals Lag

China cancels 67% of overseas coal projects, but loopholes let coal expand. Experts warn of climate risks.

September 26, 2026 One Min Read

POLICY WIRE — New York, United States — China has fulfilled its promise to stop funding overseas coal power plants, but regulatory gaps are enabling continued investment in coal projects, according to a new report.

The commitment made by Chinese President Xi Jinping in 2021 aimed to help curb climate change, and the country has canceled 67% of the coal power capacity it had planned for 2021. However, experts warn that private Chinese companies are exploiting loopholes to continue investing in coal projects abroad.

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Despite this progress, the global phase-down of coal is moving slowly, with energy-hungry regions like Southeast Asia increasing coal use due to energy security concerns. The situation highlights the challenges in aligning international climate goals with immediate energy needs.

Reporting by Policy-Wire (PW)

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