China's Belt and Road Initiative Witnessed High Green Funding

Based on new research published on August 1, China's overseas energy engagement in Belt and Road Initiative (BRI) countries in the first half of 2023 was the "greenest" in terms of project type since the initiative's inception.

According to a report from the Green Finance and Development Centre (GFDC) at Fudan University in Shanghai, renewable energy projects accounted for 56% of China's $8.61 billion in engagement, defined as construction and investment, in the energy sector in BRI countries during the first half of the year.

"If we keep this up, 2023 will be the year with the most green energy investment," said GFDC Director Christoph Nedopil.

In 2013, Chinese President Xi Jinping launched the Belt and Road Initiative (BRI) to leverage China's strengths in financing and infrastructure construction in order to "build a broad community of shared interests" across Asia, Africa, and Latin America.

However, the initiative has been accused internationally of promoting environmentally harmful energy and infrastructure projects, as well as saddling developing countries with unsustainable levels of debt.

With renewable energy projects on the rise, fossil fuel engagement this year fell to its lowest level since the BRI's inception, according to the GFDC report, with 44% in oil and gas and no new coal engagement. According to the report, by 2022, fossil fuels will account for approximately 61% of energy engagement in BRI countries.