Debt sustainability risks are rising in the Asia Pacific region according to the International Monetary Fund, however, Chinese loans are not yet playing a significant role despite concerns sparked in Australia and the U.S. after China offered aid to the Solomon Islands following the switch of diplomatic ties from Taipei to Beijing, Nikkei reports.
As China comes under increased scrutiny over its global energy investments, Chinese authorities have announced a series of multilateral initiatives to “green” its Belt and Road initiative (BRI). While just recognizing the problem is a positive step for China, these initiatives are generally too voluntary to be effective, too duplicative to be adding value, and too opaque to be adequately assessed.
Browse our analysis section for news and articles on topics such as China's Belt and Road Initiative (OBOR), the Competing Visions of Japan, India, and other regional powers, and the stakes for U.S. policy.
The timetable for an $83 billion project to build an ultrafast magnetic-levitation rail line between Tokyo and Nagoya has been delayed due to environmental concerns, Nikkei reports.
Many Asian cities, such as Jakarta and Bangkok, are threatened by rising sea levels. Unless delayed water infrastructure projects are accelerated, large sections of these cities will be underwater in the near future, Nikkei reports.
Indonesian president Joko Widodo has announced the location of Indonesia's new capital in East Kalimantan Province, the Indonesian part of Borneo island, amid concerns about mounting pollution and traffic congestion in Jakarta. Widodo has said that the capital will be green, with the latest ICT and smart city technology, however the nation remains divided over whether the costly relocation is necessary, Nikkei reports.
Drawing from academic literature, evaluations, and technical consultations, this report analyses human rights and environmental impacts at the project and macroeconomic level to give recommendations on how to mitigate the potential risks infrastructure investment can pose for achieving equality, human rights, and the environmental sustainability.
A proposed $10 trillion "Development Green New Deal" recently put forward in the U.S. would fund green infrastructure projects in Asia and elsewhere that could compete with China's Belt and Road Initiative, Nikkei reports.
Supporters of the China-Pakistan Economic Corridor have long argued that the initiative would spur development and improve Pakistan’s macroeconomic fortunes. As Pakistan faces its thirteenth IMF bailout in the last thirty years, it is clear that without serious reforms, the debt incurred to fund CPEC could do more economic harm than good.
It is critical that public-sector officials responsible for infrastructure development—both at the local and national levels—commit to transparent practices to secure sustainable financing mechanisms.
The biggest commercial bank in Japan is one of the latest Asian lenders to consider a ban on funding for new coal-fired power stations. Asian banks are recognizing the global threat from climate change and pulling back financing for the world's most carbon-intensive energy source, Nikkei reports.
Over the next 15 years, more hard infrastructure is projected to be built around the world than currently exists. As our infrastructure is transformed, so will be the economies it fuels, the regions it connects, and the global commons it underpins. These trends are too powerful and potentially beneficial for the United States to stop, and too consequential to ignore.
China’s Global Energy Interconnection (GEI) initiative is an ambitious vision for transforming the global energy system that pairs a pitch for climate leadership with Beijing's industrial policy priorities. As China makes a play for green leadership in global energy governance, the U.S. needs to present a positive agenda of its own for the clean-energy transition.
When it was launched, China heralded its Belt and Road Initiative as a “golden opportunity” to revitalize the region, but today it has raised serious concerns about debt sustainability, drawing scrutiny from the IMF. One way for Beijing to demonstrate its commitment to addressing the IMF's concerns is by partnering to develop more sustainable and transparent lending practices.
A Japanese-led consortium of international banks will jointly lend $1.31 billion for a thermal power station in West Java, Indonesia fueled by liquefied natural gas.
Asia and the Pacific have made great strides in deveopment over the past 50 years, however much remains to be done. Issues such as poverty and vulnerability, rising inequality, climate change, growing environmental pressures, and large infrastructure deficits remain to be addressed while merging trends, such as technological advancements, urbanization, and changing demographics, present opportunities and challenges
The head of the Asian Development Bank has warned countries against unsustainable borrowing to fund infrastructure projects, which could lead to debt traps and repayment trouble.
On November 30th the CSIS Energy and National Security Program hosted "Hydrogen and Green Shipping: Zero Emission Fuel in the Maritime Sector" to discuss the important role that hydrogen fuel technology could play for shipping in the transition to a low-carbon future.
Quotes and Quotas is a weekly digest of phrases and facts that help explain Asia’s infrastructure push.