China: Pilot schemes rush to launch the first carbon fund

24 January 2014 14:55 Source:ICIS

The Shanghai emission trading platform plans to launch a CNY40m (€4,9m) carbon fund to invest in Chinese certified emission reductions (CCERs) projects by Q2 2014, according to a source close to the matter. The move is expected to boost supply of these credits, which could widen their discount to allowances.

The Shanghai pilot is one of four out of seven Chinese schemes that have tried to set up a carbon fund, each with a different function.

The Guangdong platform plans to use its fund as a reserve to counter potential future price volatility, according to a Guangdong official.

The Shenzhen fund will focus on the emission reductions by major airplane corporations, according to local media, and is planned to be CNY1bn. TIt his money will be raised with the China Construction Bank in the Qianhai free trade zone this year, according to a Shenzhen official.

The pending Hubei ETS plans to cooperate with the local government’s investment platform to launch a several-million-RMB carbon fund investing in the low-carbon related programs, according to the same source. Ling Ma

By Ling Ma