“We’re seeing improved economics in Belt and Road countries, alongside supportive government policies in China,” says Robin Xing, Morgan Stanley’s Chief China Economist. But China is also well-positioned to meet the demand for financing investment in renewable energy projects, especially in light of Trump’s dismissal of prevailing climate science. While China would like to power a preponderance of its economy with renewable electricity, it has 860 gigawatts of coal power in operation. The two analysts add that, overseas, China is also involved in funding a quarter of all new coal plants — under the banner of the Belt and Road Initiative. “Chinese banks and equity funds will have to get considerably more comfortable with—and more adept at—financing low-carbon solutions abroad if they are going to contribute to a ‘green Belt and Road Initiative,’” says the World Resources Institute.

Source: Forbes May 05, 2019 15:56 UTC