President Xi Jinping told the second Belt and Road Forum in Beijing in April this year that infrastructure projects built under the BRI must be green and sustainable.
China, which has pledged that projects built under its Belt and Road Initiative will be green and sustainable, will fund more fossil fuel power projects in Southeast Asia even as western, Japanese and South Korean financiers increasingly walk away from them over sustainability concerns.
This will be the case until the host nations – such as Indonesia – have come up with good enough financial incentives and expanded power transmission and distribution infrastructure to make mass renewable energy projects viable, according to Martin David, Asia-Pacific head of projects practice group at international law firm Baker McKenzie.