“China’s energy law could help address the Belt and Road’s climate impact”, 22 June 2020

In May, China’s energy authority announced a public consultation for a draft energy law, setting the agenda for “green, low-carbon” production and a “safe and efficient” energy system. The draft law… is an omnibus bill that seeks to unify China’s diverse laws governing coal, renewables and energy conservation.

Five years after the signing of the Paris Agreement, references in the bill that position it as a “response to climate change” are welcome. Unfortunately, the proposed legislation also specifies the need for further exploration of fossil fuel energy sources such as coal, oil and natural gas…

A priority of the draft energy law is improving the regulation of energy exports and imports, including the management and import of “clean” and “advanced” energy technologies. But the bill falls short on exports, as there are no provisions for the screening of fossil fuel products or technologies…

China’s support for fossil fuel projects, such as coal power in countries that are part of the Belt and Road Initiative (BRI) has environmental and social impacts…

China’s coal financing runs contrary to international financial institutions such as multilateral development banks that have been phasing out or banning direct coal financing…

The environmental violations resulting from oil and gas pipelines and overseas investment projects highlight why China needs a comprehensive approach to governing its overseas and transboundary energy projects…

… energy bill shows that the government wants to increase control measures for both the import and export of energy technologies, even if the reference to clean energy is limited to imports for the time being. However, by focusing mostly on domestic energy policy, the draft energy law neglects the importance of tackling the carbon footprint that China is creating in BRI countries through its financing and construction of high-carbon infrastructure.

In the wake of the coronavirus, it is not inconceivable that the central government would seek to stimulate an economic recovery by relaxing environmental regulations and hesitating on costly measures to peak carbon emissions. As China and countries signed up to the BRI focus on repairing economies damaged by the pandemic, it may seem like wishful thinking to expect policy decisions to be compatible with the goals of the Paris Agreement…

[Also referred to China National Petroleum Corporation]