We, from the civil society movements and communities in Asia, Africa, and across the Global South, are sending this open letter during the momentous event of the gathering of world leaders to forge a new international consensus on how to deliver a better present and safeguard the future, during the process of which China can play a critical role in enabling and facilitating an urgently needed development transition for the Global South that is just and equitable.
On September 22, 2021, President Xi Jinping expressed a commitment during the UN General Assembly to “step up support for other developing countries in developing green and low-carbon energy,” and to halt the building of new coal-fired power projects abroad. Following President Xi Jinping’s pronouncement, we have seen China play a concrete and prominent role in renewable energy development, leading in both the solar and wind industries. It has signed follow-up bilateral MOUs on renewable energy and its infrastructure.
However, we in the Global South need more support from China in the energy transition. There still exists a deficit in funding, investment and technology transfer.
As China braces for another year of bringing such commitments to full reality, we are urging China to take on even stronger leadership in facilitating the rapid, equitable, and just transition to 100% renewable energy in Asia and the Global South by:
1. Accelerating dedicated, scaled-up, appropriate, and fair financing to support the energy transition in Asia and the Global South, particularly solar and wind. During the BRI Summit in October 2023, Pres. Xi Jinping announced that US $107 billion would be added to the BRI, covering US $96 billion from the China Export-Import Bank (CHEXIM) and China Development Bank (CDB) and US $11 billion from the Silk Road Fund, including equity investments from commercial/private companies, under the Green Investment and Finance Partnership (GIFP). We urge China to scale up the delivery of these commitments through grant-based financial instruments and mechanisms so as not to exacerbate the debt burdens of developing countries.
2. Giving priority to and strengthening policy support for investment in renewable energy, particularly solar and wind. The mobilization of Chinese state-owned enterprises (SOEs) as equity investors and financial institutions, in addition to EPCs and solar equipment manufacturers, presents a unique opportunity for China to accelerate its overseas renewable energy investment and help Global South countries convert renewable energy potential to real projects.
We urge that China’s policies be more strongly aligned with promoting people-focused, sustainable, development-oriented overseas investment in solar and wind. In particular, there is a need for more simplified approval processes for state owned enterprises (SOEs), an increase in the scope of insurance coverage, lower financing costs, and extended financing terms for solar and wind projects.
3. Fostering partnerships with local governments and initiatives with the aim of accelerating the development of RE projects on the ground where they are most needed, especially distributed solar, to address the issues of energy poverty and the lack of access to electricity that are prevalent in the Global South. When local governments are proactive, renewable energy projects can start immediately and have a greater impact.
4. Supporting developing countries in accelerating their own energy transitions through technology and knowledge transfer, and assistance in building domestic capacities. As the biggest producer and supplier of renewable energy technologies, China is in a unique position to support the energy transition in Asia, Africa, and the Global South. China can deliver this support not only by providing the necessary equipment and material needs in transitioning to renewable energy, but also through technology training, knowledge-sharing, and financing to equip Global South countries with the necessary skills and resources to rapidly develop and maintain their own renewable energy systems, including the utilization of transition minerals found in their own countries.
As civil society movements from the Global South, we continue to seek a mutual dialogue on these issues, especially in the lead-up to COP29, which will provide a major platform and opportunity to discuss the financing of the rapid transition to renewable energy for the South.
Signed by:
Lidy Nacpil, on behalf of the
Asian Peoples’ Movement on Debt and Development
An alliance of peoples’ organizations and grassroots movements with member and partner organizations based in the Philippines, Indonesia, Malaysia, Thailand, Vietnam, India, Bangladesh, Pakistan, Nepal, Sri Lanka, Japan, Korea, and China
Climate Action Network (CAN) Africa
With offices in West and Central Africa, Southern Africa and Eastern Africa, South Africa, Tanzania, Uganda, Zimbabwe and Zambia
c/o Asian Peoples’ Movement on Debt and Development
Unit 1806 Tower C MPlace Residences
Mother Ignacia St. Brgy. South Triangle 1111 Quezon City, Philippines
Email: asianpeoplesmovement@gmail.com
+63 2 2834 234 (APMDD Office)
+63 917 880 0410 (Lidy Nacpil)
+63 917 106 4478 (Malou Tabios Nuera)