According to a report by a university think tank, as part of the Belt and Road Initiative,China will focus its overseas investment in the mining and energy sectors this year, which is a boon for both the domestic economy and overseas partners.
Fudan University's Center for Green Finance and Development said on Monday that the projects are in line with the next phase of the Belt and Road Initiative, which aims to promote cross-border connectivity by building infrastructure projects in Asia, Africa and Europe.
"China has great opportunities in these technologies, and China and many BRI countries are supportive of the green transition," the report's authors noted. In addition to this, the growth in electricity demand and demand for transition minerals is driving the high demand for participation in these industries. ”
He expects China to build "partnerships" with these countries, such as through previous Belt and Road projects.
The report, which involved research by Australia's Griffith Institute for Asian Studies, said mining and oil trading would be "resource-based".Batteries, pipelines, roads, railways, and data centers could also be on the agenda of China's Belt and Road Initiative.
China has said it will prioritize "small but beautiful" projects with low investment and "good economic, social and environmental benefits." However, some countries in the Middle East and Central Asia have expressed hope that China will help them transition to renewable energy.
Last month, China discovered 10.7 billion tons**, and huge lithium deposits have been discovered in Sichuan Province. While the shift to new energy is beginning, China still needs oil to power its factories, and lithium is used to produce batteries for electric vehicles, a key growth area.
The Center for Green Finance and Development saidChina struck $7.9 billion in energy-related deals on Belt and Road projects last year, which are "the greenest in absolute terms and relative terms."
The development center saidBy the end of 2023, the total investment in Belt and Road projects will be 1053 trillion dollars.
The report notes that China and the countries participating in the initiative "clearly need" renewable energy investment to spur growth and support the "green transition" because of the huge trading opportunities in areas such as green energy, mining, mineral processing, electric vehicles and battery manufacturing in the future.
"Investors in Belt and Road projects inside and outside China should focus on smaller projects that are easier to finance and faster to implement, particularly in infrastructure and energy investments," the report saidScalable solar and wind investments appear feasible as long as local conditions allow. ”
As the cost of renewable energy falls, we also see an opportunity to invest in early phase-out of existing older coal projects, which will be both economical and environmentally friendly. ”
Last year,Mining technology cooperation through the Belt and Road Initiative increased by 1,046 percent, while metals and mining cooperation increased by 158 percent. The report notes that Chinese companies are investing heavily in metals and mining, which is particularly relevant to the green transition and EV batteries.
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