#Sustainability
RGE and China Construction Bank Guangdong Branch sign first foreign-owned carbon asset pledge
This agreement represents RGE’s second innovative commitment in carbon finance in which RGE will collaborate with financial institutions to facilitate China's efforts to achieve carbon emissions peak by 2030 and carbon neutrality by 2060. In July 2021, RGE and Bank of Communications (BCM) Jiangsu Branch entered into the Cooperation Agreement on Carbon Emission Trading Funds Custody in Nanjing. Under this first agreement, the two parties will conduct research and innovation in carbon finance products and derivatives such as carbon emission rights mortgage and pledge financing, carbon trading, carbon bonds and carbon funds through a diverse range of cooperation.
Industry sources view the first two "first agreements" reached by RGE in China, secured within weeks after the launch of China’s national carbon emission trading market, as the impetus to bring into full play the role of carbon emission trading between financial capital and the real economy. Founded by Sukanto Tanoto, RGE manages a group of resource- based manufacturing companies with global operations.
At the signing ceremony, Deng Bo, Deputy General Manager of China Construction Bank Guangdong Branch, stated that CCB has long placed great importance on the development of green finance and continuously provided strong support for sustainable development of the real economy through financial innovations. “The carbon finance cooperation agreement will further deepen the relationship between the two parties, bringing us to the ‘honeymoon period’ in traditional credit, green finance, and cross-border finance,” Deng Bo said. “CCB will continue to fulfill its responsibilities as a large state-owned bank and leverage its advantages in comprehensive operations to provide more comprehensive and higher-quality financial services for RGE, facilitating high-quality business development for RGE in China.”
Since its entry into China in the 1990s, RGE has focused on sustainable development. RGE recently announced a 30% reduction in carbon emissions its business groups’ operations in China by 2030. “The cooperation with China Construction Bank and Bank of Communications will enable RGE to increase carbon asset management efficiency and achieve its emission reduction target,” said Wang Jianguo, Chairman of RGE China Energy Management Committee. “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.”
The agreements with China Construction Bank and Bank of Communications are the most recent commitments RGE has made in reducing carbon emissions and promoting sustainable development. At the beginning of this year, RGE established a carbon management committee in China to comprehensively supervise and guide RGE's carbon asset management activities in the country. In addition to the recent banking commitments, RGE’s photovoltaic power generation pilot project at its Suqian Plant was successfully connected to the grid enabling a reduction in carbon dioxide emissions by nearly 1,000 tons per annum.
RGE manages a global group of companies in resource-based manufacturing. RGE’s business groups are actively participating in China's carbon emission trading. Sateri, Asia Symbol, and Pacific Oil & Gas operations are included in the national carbon market. Most notably, East Asia Power (Xiamen) CCGT Power Plant obtained a Voluntary Emission Reductions Certificate for 2.424 million tons of carbon dioxide from China's NDRC, setting and maintaining the national record for the largest verified emission reductions by a gas-fired power plant.
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.
