China’s ‘green economy dividends’ fuel BRI co-op, enrich local industrial ecosystem

The value of Chinese companies' new investment and construction contracts in Belt and Road Initiative (BRI) partner countries has hit a record high this year, the Financial Times reported on Thursday, citing a study by Australia's Griffith University and the Green Finance & Development Center in Beijing. The growth observed this year highlights the enduring vitality and potential of the BRI, which is increasingly serving as a catalyst in enhancing the local industrial ecosystem, particularly in the green industry sector.

While different research findings may vary due to differing methodologies, this does not diminish the assessment of the BRI's dynamism. According to the Financial Times, other researchers also said their calculations showed an increase in BRI deals. Notably, some analysts have observed that, beyond lending, China's direct investments in BRI partner countries have seen rapid growth this year.

China's non-financial direct investment in countries participating in the BRI totaled $15.52 billion in the first five months of this year, up 20.8 percent year-on-year, data from the Ministry of Commerce showed. This double-digit growth is noteworthy, especially against the backdrop of a global trend toward sluggish investment.

Contrary to this, the BRI continues to demonstrate its dynamism and potential, increasingly branching into new areas, including the green economy. According to the Financial Times, in terms of specific industries, Chinese companies have continued to invest in sectors such as traditional energy, while their contracts and investments in wind, solar, and waste-to-energy projects in BRI partner countries have reached a record of nearly $10 billion.

In recent years, the BRI has increasingly aligned with the global trend toward green and low-carbon development. The shared effort to build a Green Silk Road makes sustainable development a new frontier for international cooperation. This shift is creating broad opportunities for green investment. China has actively worked with participating countries to establish platforms for green cooperation, jointly advancing green infrastructure, green finance, and environmentally friendly investments.

According to the People's Daily, at the Third Belt and Road Forum for International Cooperation in 2023, China reaffirmed its commitment to strengthening collaboration in green infrastructure, renewable energy, and sustainable transport. China pledged to continue to support the BRI International Green Development Coalition, hold the BRI Green Innovation Conference, and establish dialogue and exchange mechanisms for the solar industry and a network of experts on green and low-carbon development. The country also emphasized the implementation of the Green Investment Principles for the Belt and Road.

China's investment in green infrastructure is steadily advancing. As reported by Qiushi Journal, the China-Pakistan Economic Corridor - a flagship BRI project - has incorporated significant renewable energy components, such as wind and solar power. These installations are expected to reduce carbon dioxide emissions by approximately 2 million tons annually.

In the field of green energy, many landmark projects have been completed under the BRI framework. For instance, the Nam Mang 1 Hydropower Station in Laos generates an average of 225 million kilowatt-hours of electricity per year, supporting more than 100,000 local households, according to media reports.

Together, these efforts demonstrate the BRI's growing role in promoting global green development through practical and impactful cooperation.

From green hydrogen to smart grids, China has made significant progress in advancing key clean energy industries by capitalizing on its vast industrial scale and ongoing technological advancements. Domestically, China is fostering the growth of its green economy, while internationally, it is extending investment and support to BRI partner countries. This international cooperation has facilitated the enhanced accessibility of clean energy technologies globally and reduced the costs associated with adopting green technologies.

Through a series of investment projects, the "green economic dividend" generated by China's technological advancements is being transformed into tangible cooperation through the BRI, driving local economic growth.

SOURCE: China’s ‘green economy dividends’ fuel BRI co-op, enrich local industrial ecosystem - Global Times