China harvesting renewable resources abroad
Oct 22, 2022
Naypyitaw [Myanmar], October 22 : China is projecting that it is seriously promoting global energy transitions and low carbon development and is focussed on renewable energy projects but this is not factually correct.
Linn Maung, writing in Mekong News said that China has changed its strategy and is focussed now on harvesting renewable energy abroad.
This extends from building dams to the extraction of rare earth elements used in the manufacturing of hybrid vehicles.
Why China is not extracting Rare Earth from its own reserves but rather exploiting Myanmar's reserves in Kachin and Shan States? The simple reason is that extracting "rare earth" causes enough damage to the environment, said Linn.
The rare earth Kingdom "Guanxi" in Guanzhaou province imports tonnes of rare earth extracts from Myanmar illegally and exports further. China is only concerned about its interest and its exploitative policy abroad remains unchanged.
In Sept 2021, Xi Jinping conveyed UN that China will extend support for green and low-carbon energy projects in developing countries and stop financing or building coal-based power projects globally to check carbon emissions.
China claims that steps have been taken in this regard as a result lot of domestic projects have been shelved. But there are instances of many "captive" coal-based power plants which are catering needs of BRI projects abroad, reported Mekong News.
So the strategy is to control carbon emissions on the domestic front rather than abroad. The largest coal-based Tigyit Power Plant in the southern Shan state, Myanmar, built and operated by China had a devastating impact on the locals.
China claims that environmental protection remains a priority but ground realities are different, said Linn.
In a classical case, the Chinese Ambassador to Myanmar, Chen Hai, inaugurated (Oct 12, 2022) a 136MW gas-based combined power plant at Kyaukphyu in Rakhine despite ecological and environmental concerns.
The Environment Impact Assessment (EIA) report was manipulated as they have contacts in the Army regime. The project is vital for China as it will supply electricity to Kyaukphyu Deep Sea Port and Exclusive Economic Zone(EEZ), the most important project under Chin-Myanmar Co-operation(CMEC).
Green BRI Centre at the International Institute of Finance, Beijing is running a narrative that the proportion of fossil fuel projects in China's Belt and Road Energy sector has bottomed out in 2020 and now 58 per cent of investment is in renewables like hydro, solar, wind and biofuel but it is misleading.
If the projects abroad have actually been shelved, in these cases, compensation for breach of contract could be due if a China party unilaterally withdraws making cancellation more complete.
China needs to clarify this. Only the projects which were in the pre-financial closure and pre-construction stage have been shelved rest all are continuing, reported Mekong News.
China wants to dam the Irrawaddy and Mekong, two large rivers in south Asia which serve as lifelines of millions of people mainly in Myanmar, Thailand, and Laos.
Daming would result in submerging of land mass being used for subsistence agriculture. Secondly, China plans to connect power grids so that transmission of power gets consolidated at their end and they control distribution, said Linn.