Continuing the previously reported decline in Chinese policy bank lending, new data shows China’s overseas energy financing decreased by 43% from $8.1 billion in 2019 to $4.6 billion in 2020.
This data is collected as part of the China’s Global Energy Finance Database, an interactive project of Boston University’s Global Development Policy Center.
Big picture:
- In 2020, China’s Global Energy Finance Database recorded $4.6 billion of overseas energy sector finance provided by China’s two development banks with global operations — the China Development Bank (CDB) and the Export-Import Bank of China (CHEXIM). This is the lowest level since 2008 and represents a decrease of 43% from the $8.1 billion in lending to foreign countries recorded in 2019:
- Despite the contraction in energy financing, CDB and CHEXIM still provided approximately the same level of energy finance as the World Bank in 2020.
- Energy sector finance provided by these two banks since 2000 now totals $245.8 billion
Zoom in:
- In 2020, there were 8 loans made to 8 countries, half of them in Africa: Nigeria, Cote d’Ivoire, Rwanda, Lesotho, Bangladesh, Pakistan, Cambodia and Serbia.
- More than half of all 2020 lending was for a natural gas pipeline project in Nigeria
- In terms of regional distribution, lending to African countries remained high; the percentage of loans in South Asia and Southeast Asia remained stable; while lending in Europe, Central Asia, and Latin America decreased in recent years.
- Finance in the power generation sector is still dominated by hydropower and coal, with the exception of a solar project in Lesotho.
- $192.5 billion, or 78%, of CDB and CHEXIM’s total overseas energy finance has been directed to BRI countries.
- The 2020 data includes updates to 31 past entries, see Appendix in the Policy Brief for details.
Dig deeper:
- Explore the interactive China’s Global Energy Finance Database
- Read the policy brief (6 pages)
- Read the blog summary
- Register to attend a webinar discussion of the findings on Wednesday, Feb. 24 9 AM EST.
African Eye Report