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The Carbon Trust is working with the UK Foreign and Commonwealth Office, and the Consulate General in Guangzhou, to deliver guidance on how to address barriers to energy efficiency for small and medium enterprises (SMEs) in China’s Guangdong Province.


The aim of the project is to discover how various sustainable financing mechanisms can increase up-take of energy efficiency projects by SMEs. 

SMEs are an essential component of China’s economy, both as drivers of the economy and in terms of potential energy savings. They hold energy saving potential of the equivalent of about £45 billion per year, which could contribute to more than two-thirds of China’s industrial energy saving target in the 12th Five Year Plan.

Over a quarter of Chinese SMEs are in Guangdong province. Guangdong also has the highest energy and carbon reduction targets of any Chinese province. But despite the strong economic and environmental case for taking action on energy efficiency, SMEs frequently do not pursue such projects. Amongst the biggest barriers are access to finance and an awareness or understanding of the opportunity.

The project has received support from the Guangdong Economic and Information Commission, and the Carbon Trust will work with local think tank, Guangdong Energy Conservation Centre, and energy services company, Guangzhou Kechuang.

This project will be managed by the Carbon Trust’s Asia office in Beijing, with support from its main team of experts in London, and leverages the Carbon Trust’s experience in setting up energy efficiency financing and advice programmes in the UK, Mexico and South Africa.

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