The effects of China's Belt and Road Initiative investments on mitigating climate risks in partner countries

The One Belt, One Road (OBOR) program is a major step toward making the idea of a worldwide community that shares common interests a reality. Nevertheless, a number of OBOR member nations are located in areas that are particularly vulnerable to the effects of climate change. The infrastructure developments linked to the OBOR program have prompted several Western countries to express concern that these nations may become even more vulnerable to the effects of climate variability. The impact of Chinese foreign direct investment (FDI) on climate change risks in OBOR member nations is explored in this article, which also analyzes the processes at work. Examining panel data from 65 partner countries spanning 2004–2020, this research examines how China's FDI affects host countries’ capacity to handle climate change risks, with a particular emphasis on each country's vulnerability risk. Important results from the research comprise: China's direct investment in OBOR regions strengthens the climate resilience of partner countries by reducing their vulnerability to climate change. Countries with lower or medium incomes, those in close proximity to China, and those that have free trade agreements with China feel the benefits of Chinese investments more acutely. Consistent with OBOR's guiding philosophy of sharing development outcomes and promoting global governance, the positive impacts of OBOR investments can be explained in part by rising incomes and stable governments. Contrary to claims of “carbon emissions transfer” and evidence that environmental sustainability is central to the OBOR project, investments made under the OBOR have decreased climate vulnerability without increasing local carbon emissions. The research findings and policy suggestions in this article provide light on the current function of China's OBOR program and suggest ways to ensure its long-term viability.