RGE to establish China’s first foreign CCER carbon asset service trust

SINGAPORE, December 28, 2021 / PRNewswire / – The RGE group of companies, which makes sustainable products that billions of people use every day, have reached an agreement with Bank of Communications International Trust (BoCom Trust) and Bank of Communications (BoCom) Jiangsu Branch, to jointly create the CCER non-fundraising carbon asset service trust BoCom Trust. This is CCER’s first foreign carbon asset servicing trust in China, following the creation by RGE of the first pledge of carbon assets belonging to foreigners and the first custody of carbon assets belonging to foreigners in China.

Under this new agreement, East Asia Power (Xiamen) Co., Ltd. as principal, will set up a real estate trust with BoCom Trust using the Chinese Certified Emissions Reduction (CCER) it holds as an underlying asset. BoCom Trust will be primarily responsible for opening, managing and closing a dedicated real estate trust account as well as opening and managing the Shanghai Environment and Energy Exchange (SEEE) trading account and of the CCER account. BoCom Jiangsu branch will provide custody, accounting and other services related to carbon assets.

The agreement involves professional asset management institutions in the management of CCER indicators in order to maximize CCER value. This trust program, with an innovative trading structure, serves as an important benchmark for trust companies to achieve peak carbon emissions and carbon neutrality goals with manufacturers, explore new forms of business and find new business opportunities. new development models.

Tong Xuewei, Chairman of BoCom Trust, told the signing ceremony that BoCom Trust will intensify its research on green trust and service trust to bring more asset management products and services to investors. In addition, BoCom Trust will leverage the benefits of BoCom’s trust structure and shareholder advantage to support from China objective of achieving peak carbon by 2030 and carbon neutrality by 2060.

Shu Langen, vice-president of RGE, China, stated that since RGE’s entry into China, it is committed to sustainable development and has announced a 30% reduction in carbon emissions in the country by 2030. RGE has also set up a carbon management committee. The cooperation will help RGE China liquidate its carbon assets and improve the efficiency of carbon asset management to meet its energy conservation and emissions reduction goals. Going forward, RGE will strengthen its cooperation with BoCom Trust and explore business models such as donation and trading of carbon assets for the sake of high quality development.

Singapore-RGE whose head office is founded by Sukanto Tanoto, has carried out several innovations in carbon finance in collaboration with banking institutions. At July 19, a little after from China the domestic carbon exchange market began to operate, RGE and BoCom Jiangsu Branch launched the first custodian of foreign-owned carbon assets in China. Shortly thereafter, RGE entered into a carbon asset collateral loan agreement with the China Construction Bank (CCB) Guangdong Branch, another national first for foreign companies in the field of innovation in the field of carbon finance.

Thanks to innovative practices in carbon finance, RGE fully plays the role of carbon emissions trading as a bridge between financial capital and the real economy, and supports from China carbon emissions trading market and achieve peak and carbon neutrality targets.

SOURCE RGE group of companies

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