China’s overseas investments to go green in 2024, ‘clear need’ for Belt and Road Initiative to focus on renewable energy
- Green Finance and Development Centre at Fudan University identifies a ‘clear need’ for renewable energy investment to stoke growth and support a ‘green transition’ in China
- China’s US$7.9 billion energy-related investment projects and construction contracts via the Belt and Road Initiative last year were ‘the greenest in absolute and relative terms’
China would concentrate its investments abroad this year in mining and energy as part of Beijing’s signature Belt and Road Initiative, according to a report from a university think tank, in a boon to its domestic economy as well as its overseas partners.
The projects fit the next phase of the initiative, which seeks to smooth cross-border trade by building infrastructure projects across Asia, Africa and Europe, the Green Finance and Development Centre at Fudan University said on Monday.
“The reasons seem to be economic – good opportunities for China in these technologies – political support for green transition from China and many belt and road countries, and high demand for engagement in these sectors driven by growth in electricity needs and growth in need for transition minerals,” author Christoph Nedopil Wang said.
China is likely to pursue mining and energy development through investment projects and construction contracts, Wang added.
He expects China to form “country partnerships” with nations that are “aligned politically” with Beijing, such as through previous belt and road projects.
Mining and oil deals would be “resource-backed”, according to the report, which was co-researched by the Griffith Asia Institute in Australia.
The study added that batteries, pipelines, roads, railways and data centres are also likely on China’s agenda for the Belt and Road Initiative.
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