Shenzhen trader sets up carbon fund

Published 13:35 on March 16, 2015  /  Last updated at 21:54 on May 11, 2016  /  China, China's Offset Market, China's Pilot Markets  /  No Comments

Shenzhen-based GDR Carbon Asset Management on Monday launched a fund that will trade permits and offsets in China’s pilot carbon markets and develop projects that reduce greenhouse gas emissions, the China Emissions Exchange in Shenzhen announced.

Shenzhen-based company GDR Carbon Asset Management on Monday launched a fund that will trade permits and offsets in China’s pilot carbon markets and develop projects that reduce greenhouse gas emissions, the China Emissions Exchange in Shenzhen announced.

The size of the fund was not disclosed, but Carbon Pulse understands it is in the region of 30 million yuan ($4.8 million).

Reports published last October suggest the fund’s initial target size was 40 million yuan.

The fund is the latest in a string of investor initiatives to get involved in China’s emissions markets.

A subsidiary of state-owned power company Huaneng in November launched a 30 million yuan fund to trade in the Hubei market, followed a month later by a 200 million yuan fund launched by a subsidiary of Haitong Securities and trading firm Treasure Carbon to deal in the CCER market.

The exchange announcement did not say if the new fund would focus on the Shenzhen market, or if it would also be open to trading in other pilot schemes.

It also made no mention of who had invested in the fund.

GDR is a licensed broker, portfolio manager and emissions verifier in the Shenzhen ETS.

By Stian Reklev – stian@carbon-pulse.com