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RGE and Bank of Communications Jiangsu Branch Sign Agreement on First Foreign-owned Carbon Asset Custody in China

NANJING, CHINA – Media OutReach – 29 July
2021 – Royal
Golden Eagle (RGE) and Bank of Communications (BCM) Jiangsu Branch have entered
into the Cooperation Agreement on Carbon
Emission Trading Funds Custody
in Nanjing.


Made three days after the launch of China’s
national carbon emission trading market, the agreement is China’s first carbon
asset custody business between a financial institution and a multinational
corporation. The agreement will bring into full play the role of carbon
emission trading as a bridge and engine between financial capital and the real
economy.


 


The agreement is a strategic move by RGE in
partnering the banking sector to facilitate China’s efforts to achieve carbon
peak by 2030 and carbon neutrality by 2060. Under the agreement, RGE will open
a dedicated account for carbon emission trading settlement with BCM to handle
all its carbon emission transactions in China. The account will be under the
supervision and custody of BCM.


 


At the signing ceremony, Lin Bo, a top official
of the Party Committee of BCM Jiangsu Branch, said that BCM remains committed
to promoting the development of real economy through financial innovation. The
custody agreement will further deepen the business relationship between both
parties in fixed asset loans, cross-border supply chain financing and green
finance. Moving forward, BCM will continue to leverage its advantages in international
and integrated operations to enhance business support for RGE.


Since its entry into China, RGE has been focused
on sustainable development and announced a target 30% reduction in carbon
emissions in China by 2030, said Shu Langen, Vice President of RGE China. The
cooperation will enable RGE to increase carbon asset management efficiency and
achieve its emission reduction target. This marks a new strategic move by RGE
to actively participate in carbon emission trading and help bolster China’s
carbon peak and neutrality goals.


 


Since its entry into China in the 1990s, RGE
has invested over RMB 60 billion (USD 9.3 billion) in Beijing, Shandong,
Jiangsu, Shanghai, Chongqing, Jiangxi, Fujian, Guangdong, and other provinces
and cities. Its business groups Sateri (Fujian) Fiber Co., Ltd., Asia Symbol
(Guangdong) Paper Co., Ltd., and East Asia Power (Xiamen) CCGT Power Plant have
for many years been involved in the pilot carbon market of their respective provinces.
Founded by Sukanto Tanoto, RGE manages a global group of companies in resource
manufacturing.


 


Presently, the operations of Sateri, Asia
Symbol, and Pacific Oil & Gas (PO&G) are included in the national
carbon market. For instance, all of Sateri operations have completed carbon emission
verification work and will participate in the national carbon market. Sateri
established a carbon management committee to promote energy efficiency, while carbon
emission rates have since continued to record declines every year. Sateri remains
on track to achieve 30% carbon emission reduction by 2030 and net zero
emissions by 2050.


 


Industry experts have suggested that the
signing of the cooperation agreement, following the launch of China’s national
carbon emission trading market, and the offer of professional custody services
by commercial banks can guide companies to play an exemplary role in carrying
out carbon emission trading compliantly and efficiently, spurring the
improvement of the national carbon market.


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