Chinese banks are the second largest financers of commodities implicated in tropical rainforest deforestation, according to research that casts doubt on Beijing’s ambitions to be a global leader in the fight against climate change.

Data analysed by Forests & Finance, a global coalition of non-governmental organisations, showed that from January 2016-April 2020, Chinese institutions provided $15bn in loans and underwriting services to companies that traded in commodities linked to deforestation in south-east Asia, Brazil and Africa.

Chinese companies involved in trading pulp and paper, palm oil, soy, rubber and timber largely operate overseas and are often funded by Chinese banks, highlighting the international footprint of the country’s financial sector. Brazil accounted for the largest amount of funding linked to deforestation, but most of the loans were made within the country.