China Beijing Environment Exchange and U.S.-China Green Fund to Launch RMB 10 Billion Carbon Fund in Xiong’an
——Helping to propel China towards the forefront of carbon trading and mitigating environmental pollution
On November 10, 2017, the Green Low Carbon Investment Symposium and Strategic Cooperation Signing Ceremony between the China Beijing Environment Exchange and U.S.-China Green Fund was held in Beijing. The historical signing was witnessed by senior officials from major institutions including the National Development and Reform Commission (NDRC), Ministry of Environmental Protection (MEP), China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), Development and Reform Bureau of Xiong’an District, China Finance Society Green Finance Committee, Tsinghua University’s Institute of Low Carbon Economics, Asian Infrastructure Investment Bank (AIIB), US-China Energy Cooperation Program, and numerous other domestic and foreign institutions and corporations.
At the signing ceremony, Mr. Ge Zhu, Chairman of the China Beijing Environment Exchange (“CBEEX”) expressed he is very pleased that the jointly established CBEEX -U.S.-China Green Fund (“Green Fund”) Carbon Fund will be officially registered in Xiong’an New District. Since the founding of the new district, it has been designated as a significant strategic project to build a new green and smart city. This was one of the seven key objectives proposed by President Xi Jinping in the planning and construction of Xiong’an New District.
Going forward, the Carbon Fund will actively execute programs relevant to the development of new businesses in Xiong’an and identify projects that will be suitable for the construction and development of the new district. In line with the investment direction of the Fund, the founding parties will assist the team in introducing green low-carbon technologies and help to commercialize them, setting a good example and model for China.
Dr. Bo Bai, Chief Executive Officer of the U.S.-China Green Fund, stated he was honored to establish strategic cooperation with the China Beijing Environment Exchange to realize the powerful nexus between private equity investments and the commercialization of carbon assets. The jointly proposed CBEEX-Green Fund Carbon Fund will invest in high-quality projects in low-carbon green sectors both at home and abroad. This will be led by the Green Fund’s unique business model and investment experience, to accelerate the construction of green and smart cities and villages through the promotion and application of green energy, energy efficiency, and environmental protection technologies.
At the same time, the Carbon Fund will leverage its expertise and focus on effectively supporting the national carbon trading market to help green development funds to quantify, collect, and commercialize carbon assets, as well as create both economic and innovation value. This is consistent with the development of a new carbon fund model in China to support the global response to climate change.
Subsequently, at the Strategic Cooperation Signing Ceremony between CBEEX and Green Fund, the two parties also signed a memorandum of cooperation (MOC) with Beijing Huayuanda Power Engineering Co., Ltd. and U.S. Green Cert (a green certification company).
In recent years, China’s focus on low-carbon development has made remarkable achievements in its response to climate change. With the approach of the launch of the national carbon market in 2017, the Carbon Fund will also open up vast opportunities for the development of low-carbon industries.
Some organizations predict that a 30-40 billion ton carbon quota market will be created, and China will become the world’s largest carbon market. The total market capitalization is expected to reach RMB 120 billion. If futures and other derivatives are also taken into account, the transaction volume can reach as much as RMB 500 billion.
The distinguished guests expressed that the newly established CBEEX-Green Fund Carbon Fund in Xiong’an New District will complete China’s carbon finance system. At the same time, this positive endeavor will further improve liquidity in the carbon market, promote the development of a green financial system and green industries, as well as lead to the formation and growth of green high-tech industries.
The U.S.-China Green Fund is a commercially-run private equity fund initiated by business and government leaders from both the U.S. and China during President Xi Jinping’s state visit in September 2015. Its mission is to promote sustainable green development in China through innovative collaborations in finance, green technology and business models, and by combining U.S. technologies and products with Chinese market potential and rapid commercialization capabilities. Through experience and practice, we developed a unique business model which anchors on five pillars – Policy, Research, Integration, Money and Execution (P.R.I.M.E.), to leverage policy support and use “technology + capital” to create new business models and build strong execution teams in order to “Invest · Greenify China.” Presently, the Fund has made a number of investments into two main areas: 1) green energy, energy efficiency, and environmental protection and 2) green smart cities and villages, making great strides in commercial building energy efficiency, green smart homes, data center energy savings, waste heat recovery, steel industry restructuring, green smart parking, and green dormitories and apartments. The Fund aims to become the best-in-class green equity fund and the commercial implementer of U.S.-China green collaboration.
China Beijing Environment Exchange was founded on Aug 5th, 2008 under the approval of the Beijing municipal government. CBEEX has established a professional market platform for trading various environmental equities. It functions as a public platform that aims to utilize economic measures to address environmental issues, as a leading and well-constructed national environmental exchange market, as a professional platform for international environmental cooperation, and as an important market for trading environmental financial derivatives.
Name: External Affairs
Organization: U.S.-China Green Fund
For more information: www.uschinagreenfund.com