Shenzhen: Carbonwise becomes first custody member

Carbonwise, a subsidiary of KOE Environmental Consultancy, became the first carbon custody member of the Shenzhen emission trading scheme (ETS) after signing an agreement with the Shenzhen Emission Exchange (CEE).

Carbon custody members are allowed to host, manage and trade emission quotas through a trusteeship under the supervision of CEE, according to Wang Yaxin, director of CEE.

The potential custody fee and profit sharing is determined by the agreement between carbon custody members and compliance entities without any participation of CEE, Wang said.

CEE will provide carbon custody members necessary support and services beyond their supervision responsibility. It held an introduction seminar regarding the mechanism of carbon custody last week and will hold another seminar this Friday to connect the carbon custody members and compliance entities.

Carbonwise will establish trusteeship with compliance entities in Shenzhen ETS and provide a comprehensive carbon custody service package, which will not only help compliance entities manage their carbon assets with better practice but also enhance carbon market liquidity. Kun Yang