The UK and China have got together to form a joint venture to open up markets for innovative UK low carbon businesses.

The new joint venture goes by the name of the China-UK Low Carbon Venture Capital Company. It’s a £10 million joint venture between the Carbon Trust and the China Energy Conservation Investment Corporation (CECIC). It will support the development and deployment of low carbon technologies in China.

UK Government supremo Lord Mandelson oversaw the creation of the new venture along with Chairman Zhang Ping of the National Development and Reform Commission of the People’s Republic of China. The initiative was welcomed by the Institute of Directors and Greenpeace.

It is hoped that the new venture will help British business wanting to export low carbon technologies into China. It will accelerate low carbon innovation and technology transfer in China, opening new markets for innovative, British clean technology companies and, they maintain, reduce global carbon emissions. Two strategies will be in play, the first 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.

As well as the initial £10 million investment funded by the Carbon Trust and the China Energy Conservation Investment Corporation hope to use their influence to leverage money via third party funding from the public and private sectors.

Lord Mandelson, Secretary of State for Business, Innovation and Skills, said:
“As we enter a new era of innovation driven by the rapidly expanding low carbon economy, we must ensure that UK companies benefit and develop overseas markets for their commercial propositions. This new joint venture is a win win, as it helps UK companies access the important Chinese market but also helps China in its move to develop new clean technologies.”

Tom Delay, Chief Executive of the Carbon Trust, said:
“This is great news for the UK as China represents an exciting new market for clean technology businesses. The new venture will act as an important bridge for UK companies entering the Chinese low carbon marketplace. 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.

“We want this joint venture to become a successful example of an international collaboration to accelerate low carbon innovation and technology transfer and a framework for future international agreements.”

Mr. Wang Xiaokang, the President of CECIC, said:
“As the only national investment corporation specialised in the fields of energy conservation, emission reduction and environmental protection in China, China Energy Conservation Investment Corporation plays a unique role without any substitute.

“China Energy Conservation Investment Corporation and the Carbon Trust are both fully committed to tackling climate change, improving energy efficiency and promoting low carbon innovation in our respective countries. We share the same important mission of pushing forward energy conservation and emission reduction. We look forward to the new achievements brought about by the new joint venture.”

Miles Templeman, Director General of the Institute of Directors, said:
“It is important that UK businesses are helped to benefit from the rapidly growing demand for low carbon technologies in China and in other emerging market economies. The Carbon Trust’s new joint venture is a good start in opening up the key Chinese market to UK companies.”

John Sauven, Executive Director of Greenpeace, said
“China will need to substantially increase its spending on curbing greenhouse gases in the next 20 years. All economic studies have found that early action on emissions is cheapest, and that deferring curbs to emissions leads to far greater costs in the medium term. But China will need help and financial assistance to overcome a lack of intellectual property rights and the research capacity to develop new technologies. The opportunities for UK business with initiatives such as that being developed by the Carbon Trust will be enormous.”

Guest Article by Neil Camp