China has canceled most of its planned overseas coal power projects since 2021, according to a new report, signaling a positive development for global climate efforts. However, experts caution that regulatory loopholes allow Chinese companies to continue investing in overseas coal projects, which may weaken the country's commitment to reducing emissions. In 2021, Chinese President Xi Jinping pledged to stop funding overseas coal power plants during a United Nations General Assembly address. This year, he did not attend the meeting, and Vice President Han Zheng represented him instead. The report, published by the Centre for Research on Energy and Clean Air (CREA) and the People of Asia for Climate Solutions (PACS), indicates that China has canceled 67% of its planned overseas coal power capacity, which totals 61.5 gigawatts. This would have resulted in 6.4 billion tons of lifetime carbon dioxide emissions. The cancellation is considered a small but meaningful step forward in the global fight against climate change. Despite this progress, experts point out that private Chinese companies are still allowed to invest in overseas coal projects, which continues the expansion of coal energy. Indonesia has experienced a surge in coal plant construction funded by Chinese companies, specifically to power heavy industries such as nickel and aluminum smelting. These plants, known as "captive coal," are not connected to the national power grid. Indonesia leads in planned China-backed coal capacity at 17.1 gigawatts, followed by Vietnam and Pakistan, each with less than 4 gigawatts. The Russia-Ukraine War and the Iran war have caused energy shocks, prompting countries in Southeast Asia to increase their coal use for energy security. This has led to a reassessment of policy and investment strategies in the region, which accounts for nearly 20% of global energy demand growth through 2035, according to the International Energy Agency. China, the world's largest annual emitter of carbon dioxide, has been transitioning to renewable energy, becoming the largest producer of solar panels and wind turbines. However, it still leads in building new domestic coal infrastructure. While the expansion of clean energy should encourage Beijing to prioritize renewables in its international energy strategy, commercial interests can undermine these efforts.