RGE to Establish First Foreign-owned CCER Carbon Asset Service Trust in China
The RGE group of companies that produces sustainable products that billions of people use every day, has entered into an agreement with Bank of Communications International Trust (BoCom Trust) and Bank of Communications (BoCom) Jiangsu Branch, to jointly set up the BoCom Trust non-fundraising CCER carbon asset service trust.
This is the first foreign-owned CCER carbon asset service trust in China, following RGE's previous establishment of the first foreign-owned carbon asset pledge and the first foreign-owned carbon asset custody in China, RGE said in a press release.
Under this newest agreement, East Asia Power (Xiamen) Co., Ltd. as the principal, will set up a property trust with BoCom Trust using Chinese Certified Emission Reduction (CCER) that it holds as the underlying asset. BoCom Trust shall be primarily responsible for the opening, management and closure of a dedicated account for the property trust and the opening and management of the trading account of Shanghai Environment and Energy Exchange (SEEE) and CCER account. BoCom Jiangsu Branch shall provide carbon asset custody, accounting and other services.
The agreement involves professional asset management institutions in CCER indicator management to maximise CCER value. This trust programme, with an innovative trading structure, serves as a significant reference for trust companies to achieve the targets of carbon emission peak and carbon neutrality with manufacturers, explore new forms of business, and find new development models.
Tong Xuewei, Chairman of BoCom Trust, at the signing ceremony said that BoCom Trust will ramp up research on green trust and service trust to render more asset management products and services for investors. In addition, BoCom Trust will leverage the advantages of the trust structure and BoCom's shareholder advantage to support China's goal of achieving carbon peak by 2030 and carbon neutrality by 2060.
Shu Langen, Vice President of RGE, China, said that since RGE's entry into China, it has been striving for sustainable development and has announced a 30% reduction in carbon emissions in the country by 2030. RGE has also set up a carbon management committee. The cooperation will help RGE China liquidise its carbon assets and enhance carbon asset management efficiency to achieve its energy conservation and emission reduction targets. Going forward, RGE will enhance cooperation with BoCom Trust and explore business models such as carbon asset donation and trading for sake of high-quality development.
Singapore-headquartered RGE, founded by Sukanto Tanoto, has made several carbon finance innovations in collaboration with banking institutions. On July 19, soon after China's national carbon trading market began operation, RGE and BoCom Jiangsu Branch launched the first foreign-owned carbon asset custody in China. Shortly after, RGE concluded an agreement on carbon asset pledge loans with China Construction Bank (CCB) Guangdong Branch, another national first for foreign-owned enterprise in carbon finance innovation.
Through innovative practices in carbon finance, RGE brings into full play the role of carbon emission trading as a bridge between financial capital and the real economy, and support China's carbon emission trading market and attain the targets of carbon peak and neutrality.