Opinion | China must resist greenwashing its dirty coal habit with green bonds

China recently issued its first sovereign green bonds on the London Stock Exchange, a landmark moment that projected Beijing as a leader in sustainable finance. The move was welcomed: it promised to channel international capital into China’s vast green economy and could deepen climate cooperation with Britain and the European Union.

But China also continues to approve new coal power plants and last year launched construction on 94.5 gigawatts of capacity, the most since 2015. Therein lies a dilemma: can China credibly claim climate leadership while doubling down on its dirtiest fuel?

To be fair, China’s environmental achievements are impressive and often underappreciated. It has become the world’s largest investor in renewable energy, with the most installed solar and wind power. It pledges to peak its carbon emissions before 2030 and reach carbon neutrality by 2060. It dominates the clean technology markets, from electric vehicles to solar panels, and has made serious investments in reforestation, electrified public transport and emissions trading.

China is the world’s largest coal producer and consumer. In response to the 2021 power crunch, Beijing ramped up coal production. For two years in a row, it ordered coal mines to operate flat out. Last year, it approved 66.7GW of new coal power capacity, more than the rest of the world combined.