All around the world, Chinese companies are building factories, mines, and refineries that make EVs, batteries, solar panels, and other green energy technologies. Since 2022, Chinese companies have committed to spending $200 billion in clean energy manufacturing investments overseas. These facilities are located in every continent other than Antarctica.
This massive investment is taking a meaningful bite out the funding needed to significantly reduce the world’s greenhouse gas emissions. Without question, this is a good thing.
However, the situation isn’t all positive. Many of the projects are going forward in spite of local opposition and some have significant environmental, social, and human rights impact.
Hungary is a major focus for Chinese clean energy projects. There have been at least 18 EV and battery-related projects announced or built in Hungary to date, adding up to $17 billion in investments. Hungary does not have abundant resources that would make it otherwise attractive for such facilities. Environmentalists say that the Hungarian investments have been accelerated by lax oversight and fast-tracked permitting. Victor Orban’s government eliminated the country’s environment ministry after coming to power in 2010 and has broadly cracked down on protests and dissent.
As is generally the case when large sums of money are involved, even projects whose desired outcome and motivation are positive and in keeping with some of the world’s most pressing needs can suffer from corruption and can still be harmful in many ways.
