RGE and Bank of Communications Jiangsu Branch Sign Agreement on First Foreign-owned Carbon Asset Custody in China
Royal Golden Eagle and Bank of Communications Jiangsu Branch have entered into the Cooperation Agreement on Carbon Emission Trading Funds Custody in Nanjing.
July 30, 2021. By News Bureau
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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