developing countries in Africa. Given
China’s interest in exporting clean energy
technologies to BRI and African countries,
combined with the need to ensure that
Chinese companies retain their societal
licence to operate, providing packages for
these countries has the potential to be a
win-win approach.
7.2.1 Cooperation Opportunity
China is in a unique position to work with BRI
partner countries on a low-carbon, energy-secure
transition by creating the frameworks for FDI
and energy infrastructure development in clean
energy technologies. At the same time China
could work with others to enhance the governance and transparency of energy sector investments in line with best practice standards, such as
the EITI.
Targeted outcome: stable energy transitions in
partner countries, facilitated by:
• harmonised portfolio standards and strategies
of multilateral development banks (MDBs),
policy banks and export credit agencies
(ECAs);
• investment and technology packages for
developing country partners; and
• support for energy sector good governance.
To achieve such an outcome China could
adopt two intrinsically linked strategic cooperation pathways:
(1) multilateral coordination on phasing down
FDI and development finance for
high-carbon projects, while implementing
international best practice on environmental,
social and governance standards; and
(2) cooperation strategies with developing
countries, MDBs and climate finance providers to increase access to clean energy
technologies and alternative development
pathways.
7.2.2 The BRI as a Focal Point
for Cooperation
with Financial Institutions
and Regional Forums
BRI countries provide an obvious focus for
cooperation in this regard. Other developing
country groupings with high demand for renewable technologies that could be met under
(2) above include the Africa Renewable Energy
Initiative (AREI) through the Forum on
China-Africa Cooperation (FOCAC) and the
Climate Vulnerable Forum. Supporting investment packages could be developed in collaboration with developed country partners via
MDBs and international coordination and support mechanisms such as the OECD Development Centre and the International Renewable
Energy Agency (IRENA).
7.2.3 Rationale for Action
Benefits for China include:
• better governance in oil and gas producing
developing countries, improving overall
energy security;
• improved societal licence to operate for Chinese companies by joining the EITI, for
example, and engaging in technology transfer
projects; and
• contributing to sustainable investments in
BRI countries.
Benefits for partner countries include access
to climate finance and low-carbon technologies,
and support with national governance reforms
where needed.
7.2.4 Strategic Pathways
(1) Phasing down high-carbon FDI and
development finance, and enhancing best
practice ESG standards
The phase-down of FDI into high-carbon
sectors could be achieved by China working to:
(i) establish BRI and G20 working groups to
align the standards and strategies of MDBs and
Special Report 5: International Energy Cooperation and Governance
649
China’s interest in exporting clean energy
technologies to BRI and African countries,
combined with the need to ensure that
Chinese companies retain their societal
licence to operate, providing packages for
these countries has the potential to be a
win-win approach.
7.2.1 Cooperation Opportunity
China is in a unique position to work with BRI
partner countries on a low-carbon, energy-secure
transition by creating the frameworks for FDI
and energy infrastructure development in clean
energy technologies. At the same time China
could work with others to enhance the governance and transparency of energy sector investments in line with best practice standards, such as
the EITI.
Targeted outcome: stable energy transitions in
partner countries, facilitated by:
• harmonised portfolio standards and strategies
of multilateral development banks (MDBs),
policy banks and export credit agencies
(ECAs);
• investment and technology packages for
developing country partners; and
• support for energy sector good governance.
To achieve such an outcome China could
adopt two intrinsically linked strategic cooperation pathways:
(1) multilateral coordination on phasing down
FDI and development finance for
high-carbon projects, while implementing
international best practice on environmental,
social and governance standards; and
(2) cooperation strategies with developing
countries, MDBs and climate finance providers to increase access to clean energy
technologies and alternative development
pathways.
7.2.2 The BRI as a Focal Point
for Cooperation
with Financial Institutions
and Regional Forums
BRI countries provide an obvious focus for
cooperation in this regard. Other developing
country groupings with high demand for renewable technologies that could be met under
(2) above include the Africa Renewable Energy
Initiative (AREI) through the Forum on
China-Africa Cooperation (FOCAC) and the
Climate Vulnerable Forum. Supporting investment packages could be developed in collaboration with developed country partners via
MDBs and international coordination and support mechanisms such as the OECD Development Centre and the International Renewable
Energy Agency (IRENA).
7.2.3 Rationale for Action
Benefits for China include:
• better governance in oil and gas producing
developing countries, improving overall
energy security;
• improved societal licence to operate for Chinese companies by joining the EITI, for
example, and engaging in technology transfer
projects; and
• contributing to sustainable investments in
BRI countries.
Benefits for partner countries include access
to climate finance and low-carbon technologies,
and support with national governance reforms
where needed.
7.2.4 Strategic Pathways
(1) Phasing down high-carbon FDI and
development finance, and enhancing best
practice ESG standards
The phase-down of FDI into high-carbon
sectors could be achieved by China working to:
(i) establish BRI and G20 working groups to
align the standards and strategies of MDBs and
Special Report 5: International Energy Cooperation and Governance
649