Energy Transition in the BRI

<jats:p>In this chapter, the authors consider the evolution of energy investments under China's Belt and Road Initiative (BRI) from traditional infrastructure projects toward a sustainable, low-carbon renewable energy model. They specifically assess the transformation of the BRI strategy as it relates to the Green BRI framework in terms of its public finance instruments, green financing tools, and risk management. They highlight the role of analytical instruments, such as the green public financial management approach, green budget tagging, and carbon shadow pricing, in channeling investments from carbon-intensive initiatives to renewable energy infrastructure projects. In addition, they explore the effectiveness of China's financial infrastructure, which has been developed with the Asian Infrastructure Investment Bank, and the Silk Road Fund. They argue that the Green BRI model has transcended mere physical connectivity, establishing a financial framework that supports the transition to a low-carbon economy in alignment with the 2030 Sustainable Development Goals.</jats:p>