£10 million pact with China to benefit UK firms

The Carbon Trust and the China Energy Conservation Investment Corporation (CECIC) have signed a £10 million agreement to develop and deploy low carbon technologies in China.

As a joint venture to accelerate low-carbon innovation and technology transfer in China, the agreement is expected to both help reduce global carbon emissions and open new markets for innovative, British cleantech firms.

The 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 main goals: 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.

In addition to the initial investment of  £10 million from the CECIC and the Carbon Trust, the joint venture aims to attrach third party funding from both the public and private sectors.

“The Chinese market for low-carbon and clean technology products and services is substantial and growing at a significant rate,” said Ed Miliband, UK Energy and Climate Change Secretary. “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.”

“China represents an exciting new market for clean technology businesses,” added Tom Delay, chief executive of the Carbon Trust. “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.”