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Are China's energy investments in Africa green enough?

September 5, 2018
 

New coal power projects in developing countries go against China’s vision for South-South climate cooperation, writes Lili Pike. Source: chinadialogue.net

In the past year, Egypt signed contracts to build the world’s largest coal-fired power plant and broke ground on the world’s largest solar farm – both with the help of Chinese banks and contractors.

These mega projects highlight a growing gap between China’s vision of South-South climate cooperation, which prioritises clean energy projects, and its actual investments across the African continent, which still include coal and hydropower projects that pose serious environmental risks.

Setting the energy and climate roadmap

Leaders from 53 African nations are gathered in Beijing from September 3-4 for the triennial Forum on China Africa Cooperation (FOCAC). Established in 2000, FOCAC is an arena for China and Africa to deepen their political and economic ties, which are increasingly important given that China has become Africa’s third largest investor.

At past summits, Chinese presidents committed major loans to African nations – US$5 billion (34.15 billion yuan) in 2006, US$10 billion (68.3 billion yuan) in 2009, US$20 billion (136.6 billion yuan) in 2012, tripling to US$60 billion (409.8 billion yuan) in more broadly defined “investment” in 2015.

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