China’s Belt and Road Initiative (BRI) is the biggest vehicle for foreign direct investment in the world, but it is presently locking in outdated, dirty, and inefficient technologies in recipient countries rather than preparing them for sustainable prosperity in a carbon-constrained world.

China must overhaul its social and environmental policies governing overseas investments to make them consistent with its domestic policies. As China seeks to reduce its overseas investment risks, it should be conscious that social instability caused by air pollution and climate damage rank among the biggest risks of all.

According to official Chinese government sources, the BRI is motivated by a desire to “promote an orderly and free flow of economic factors, highly efficient allocation of resources, and deep integration of markets by enhancing the connectivity of the Asian, European, and African continents and their adjacent seas”.