Status of China's overseas coal funding pledge

What happened

Five years after pledging at the 2021 U.N. General Assembly to stop funding overseas coal projects, China has largely adhered to its commitment.

Regulatory loopholes continue to enable the development of coal projects in regions including Southeast Asia.

As of September 2026, global climate commitments are reported to be dangerously off track.

Why it matters

The persistence of coal projects through regulatory loopholes undermines international climate goals, as coal-fired power is a primary contributor to global carbon emissions.

Context

There are approximately 2,500 coal-fired power stations worldwide, which collectively generate about one-third of the world's electricity.

While the total number of operational coal plants began declining in 2020, construction of coal plants is continuing in China and Southeast Asia.

The UN Secretary General has called for OECD nations to phase out coal-fired generation by 2030, with the rest of the world to do so by 2040.