Planet China: Ninth in a series exploring Beijing’s global development impact on the environment.
BANTEN PROVINCE, Indonesia—Cilegon is enveloped by coal-fired power plants, with several within a 10-mile radius. Smog frequently obscures the surrounding hills and sky.
Nearby is a 2,000-megawatt plant, Java 7, completed in 2020 as part of China’s regional investment.
China has significantly contributed to building and financing coal plants globally, which now emit more carbon dioxide than many nations, according to an Inside Climate News analysis of data from Global Energy Monitor.
Indonesia exemplifies the climate impact of this investment. As a major recipient of China’s Belt and Road Initiative, Indonesia has the fourth-largest coal fleet and emissions have doubled since 2005.
While Indonesia’s leaders drive its coal expansion, China remains the key foreign contributor, providing rapid financing with minimal conditions.
Despite a 2021 pledge by China’s President Xi Jinping to cease coal financing, Chinese firms are building new plants in Indonesia.
In July, Chinese entities were involved with at least 17 units at nine coal plants in Indonesia, while 27 additional units lacked known Chinese involvement.
The expansion coincides with global extreme weather events, threatening Indonesia’s climate goals.
Many Chinese-supported plants power operations tied to clean energy transitions, such as nickel refining for electric vehicle batteries, exploiting loopholes in Xi’s pledge.
Beyond these projects, China has mostly adhered to its coal financing ban, with few exceptions.
Last year, 52 Chinese-backed coal plants were planned or under construction worldwide, with Indonesia hosting the majority, according to the Centre for Research on Energy and Clean Air. These plants could emit over 200 million metric tons of carbon dioxide annually.
Indonesia faces challenges in reducing emissions due to reliance on young coal plants.
Officials express willingness to retire plants early, contingent on economic stability, and insist wealthy nations bear the costs.
The Just Energy Transition Partnership (JETP) was launched to facilitate this transition but has struggled with project identification and execution.
Chinese officials have remained largely silent on future plans for overseas coal facilities.
“China is a friend to all presidents,” said Muhammad Zulfikar Rakhmat from the Center of Economic and Law Studies. Chinese financing has been swifter and less conditional compared to other nations.
Elsewhere, however, projects announced before Xi’s pledge continue to advance.
Indonesia’s coal sector has received substantial backing from China, a key player in the country’s industrialization and energy strategy.
The surge in captive coal plants is spurred by policies encouraging local mineral processing, primarily driven by Chinese enterprises.
Despite a shift towards greener Belt and Road projects, Indonesia’s emissions continue to rise.
China’s strategic interests have deep historical roots in Indonesia, with investments increasing sharply in recent years.
In 2024, Indonesia was the largest recipient of Belt and Road investments, benefitting from over $70 billion in development finance.
Nickel mining and processing, largely controlled by Chinese entities, have heavily impacted local environments.
China’s influence has often been criticized as creating a “hidden debt trap,” with many development benefits flowing back to China.
Indonesia has seen social unrest and protests against Chinese-backed projects, with reports of human rights violations.
Environmental protests in Indonesia have been met with heavy-handed government responses.
International watchdogs have documented widespread labor and environmental abuses in Chinese-run operations.
Despite commitments to green energy, the expansion of coal-fired plants continues, complicating Indonesia’s energy transition.
Original Story at insideclimatenews.org