On the morning of November 26, the launch ceremony for carbon emission trading of Shanghai municipality was held in Shanghai Environment and Energy Exchange. This is the second carbon emission trading market launched among the first group of 7 pilot provinces and municipalities after the opening of Shenzhen carbon trading market in this June. After the opening of Shanghai carbon trading market, Sinopec Shanghai Gaoqiao Branch and Sinopec Shanghai Petrochemical Company Limited (SPC) together purposed 6000 tons of carbon quota from Shenergy Group, finishing the first carbon emission right transaction based on quota.
At the launch ceremony, Industrial Bank (IB) Shanghai Branch received the certificate for the settlement bank for first carbon transaction, becoming the first depository and clearing bank for funds of pilot carbon trading in Shanghai. In addition, IB became a clearing and settlement bank for Shenzhen carbon trading market in this June.
As learnt by the reporter, as the earliest bank carrying out all-round cooperation with Shanghai carbon pilot project, IB Shanghai Branch signed a strategic cooperation agreement with Shanghai Environment and Energy Exchange in November 2011, which marks the first strategic cooperation in the two industrial areas. Moreover, it successfully developed the clearing system of carbon trading funds for the exchange through research, becoming its first depository, clearing and regulatory bank of carbon trading funds. Now, IB has provided trading and account-opening services for nearly 60 enterprises participating in the carbon trade of Shanghai.
As noted by the reporter, in the aspect of carbon finance, IB released clean development mechanism (CDM) for international carbon trading market at an early time, and further released a variety of carbon finance related businesses in succession, such as carbon purchase/sale agency, letter of guarantee for carbon trading, and carbon assets pledged credit extension. With the progress in the carbon trading pilot projects at home, the bank has gradually formed carbon finance oriented service solutions covering settlement, financing, intermediary, and assets management, building a leading financial service platform for carbon market in China.
Now, the relevant officer in charge of the Environment Finance Department of IB Head Office indicated, the bank has signed all-round cooperation agreement with 6 of the 7 state-level carbon trading pilot regions to provide a package of financial services including design of trading framework and rules, and depository and clearing of funds, thus pushing the construction of domestic carbon trading markets. In the key regions including Shanghai, Guangdong, Tianjin, Hubei, Shenzhen and Chongqing, IB signed agreement with competent authorities or trading platform of carbon pilot projects, with which it would become a main clearing bank of the carbon trading market, completed the connection between account opening and settlement of the trading system, thus building a good foundation for the smooth operation of the carbon trading market.
On June 18, in Shenzhen carbon trading market, the first one launched in China, IB has, as one of the three designated clearing and settlement banks, actively involved in many aspects such as account opening for enterprises, depository of trading funds, transaction clearing, participation in enterprise extension, and financial services.