UK and China unite to tackle climate change through groundbreaking £10m low carbon innovation agreement

05 May 2009

L-R: Mr. Wang Xiaokang, Ed Miliband and Tom Delay

Joint venture will open markets for innovative low carbon businesses and reduce global carbon emissions

The Carbon Trust today signed a groundbreaking agreement in Beijing with the China Energy Conservation Investment Corporation (CECIC) to develop and deploy low carbon technologies in China. This partnership will help British business wanting to export low carbon technologies into China.

The £10 million agreement will see a joint venture created to accelerate low carbon innovation and technology transfer in China, opening new markets for innovative, British clean technology companies and reducing global carbon emissions.

The Carbon Trust signed the agreement with CECIC to accelerate low carbon innovation in what is already one of the fastest growing markets for low carbon technologies.

CECIC was founded by the Chinese State Council to promote and lead the advance of the energy efficiency and environmental protection industries in China.

The joint venture will have two core objectives: to incubate new and emerging low carbon technologies and introduce selected low carbon businesses from the UK to China; and to provide financial investment for UK and Chinese low carbon businesses in China. As well as the initial £10 million investment funded by CECIC and the Carbon Trust, the joint venture aims to leverage significant third party funding from the public and private sectors.

This agreement represents an important step towards the UK and the world using low carbon technology to drive economic recovery as outlined by Ed Miliband and Peter Mandelson in their low carbon Industrial Summit earlier this year. The Low Carbon Innovation Agreement is another example of how the UK is at the vanguard of this rapidly growing global market.

Ed Miliband, UK Energy and Climate Change Secretary, said:

"The Chinese market for low carbon and clean technology products and services is substantial and growing at a significant rate. We can see here clear evidence of the vision outlined in the UK Government’s Low Carbon Industrial Strategy that advanced green manufacturing presents us with a huge economic opportunity as well as reducing our carbon emissions. This new agreement is an important contribution to building a global low carbon economy, bringing UK and Chinese expertise together to generate real commercial value."

Tom Delay, Chief Executive of the Carbon Trust said:

"China represents an exciting new market for clean technology businesses. We hope to act as a bridge for UK companies entering the Chinese low carbon marketplace and believe that our approach to low carbon innovation, coupled with CECIC’s expertise in clean energy in China, will open up new exciting opportunities for UK companies at the cutting edge of carbon reduction."

"We want this joint venture to become a successful example of an international collaboration to accelerate low carbon innovation and technology transfer and a framework for future international agreements."

Mr. Wang Xiaokang, the President of CECIC, said:

"As the only national investment corporation specialised in the fields of energy conservation, emission reduction and environmental protection in China, China Energy Conservation Investment Corporation plays a unique role without any substitute."

"China Energy Conservation Investment Corporation and the Carbon Trust are both fully committed to tackling climate change, improving energy efficiency and promoting low carbon innovation in our respective countries. We share the same important mission of pushing forward energy conservation and emission reduction. We look forward to the new achievements brought about by the new joint venture."

Notes to Editors

1. Spokespeople from the Carbon Trust are available for interviews. Please contact the Carbon Trust Press Office on 0207 544 3100 or carbontrust@fishburn-hedges.co.uk
2. Chinese press should contact Elly Hao on +86 136 9339 5107 or elly.hao@upstreamasia.com.cn
3. The Chinese market for low carbon and clean technology products and services is substantial and growing at a phenomenal rate, with the total value of the clean technology market estimated at US$186bn in 2010 and US$555 billion in 2020 (US Department of Commerce: Clean Energy – an exporters guide to China, July 2008).
4. Both CECIC and the Carbon Trust have committed to up to £5 million to invest in the joint venture.
5. The joint venture follows a Memorandum of Understanding signed by The Carbon Trust and CECIC in April 2008, to explore opportunities to work together on carbon footprinting analysis and ways to accelerate low carbon technology innovation and commercialisation.

The Carbon Trust

1. The Carbon Trust is an independent company set up in 2001 by Government in response to the threat of climate change, to accelerate the move to a low carbon economy by working with organisations to reduce carbon emissions and develop commercial low carbon technologies.
2. We cut carbon emissions now by giving business and the public sector expert advice, finance and accreditation to help them reduce their carbon footprint and to stimulate demand for low carbon products and services.
3. Since 2001 we’ve helped UK business save over 17 million tonnes of CO2, and more than £1billion. These savings will double by 2011 as we give support and advice to even more UK businesses.
4. In 2008 alone the Carbon Trust supported half a million UK businesses, saving companies over £200 million from their annual energy bills and cutting up to 2.3 million tonnes of carbon dioxide from their annual emissions.
5. We cut future carbon emissions by developing new low carbon technologies
6. We are helping the UK become a global hub for low carbon innovation. We do this through funding and managing projects, investing and collaborating on low carbon technologies and by identifying market barriers and practical ways to overcome them. Our work on commercialising new technologies will save over 20 million tonnes of carbon a year by 2050.
7. The Carbon Trust is undertaking world leading projects on offshore wind, algae and advanced solar power.

The China Energy Conservation Investment Corporation

1. The China Energy Conservation Investment Corporation (CECIC) is a large, state owned enterprise managed and administered by the State Owned Assets and Supervision and Administration Commission (SASAC) under the Chinese State Council. CECIC is the only specialised corporation among the State Owned Enterprises engaging in integrating the services of energy conservation and environmental protection, investment controlled stocks and capital management.
2. The strategic target for CECIC is to become the largest state owned investment controlled stock corporate in the fields of energy efficiency, emissions reduction and environmental protection. Key business areas for CECIC include: expanding investment development in energy efficiency services; advisory services to reduce energy related emissions; management of industrial and municipal wastes; building a platform for energy conservation and emission reduction projects (including introduction of technology, integrating engineering projects, financing, etc).
3. By 2012, the asset scope of the company’s programmes will reach 83 billion RMB with 27.6 billion RMB as annual business revenue and 5.6 billion RMB as total profits. Its aim is to achieve energy savings of about 15M tons of standard coal and a carbon dioxide emissions reduction of about 39M tons.
4. For more information on CECIC visit http://www.cecic.com.cn/

Media Enquiry: