Advertisement
Baowu Steel Group plans US$7.7 billion fund to pursue carbon-neutral projects, help China cut greenhouse emissions
- The world’s largest steelmaker has established an investment fund focusing on clean-energy projects to help China achieve its carbon-neutrality goals
- The fund will pursue investment opportunities in clean energy, green technology, environmental protection and pollution control
Reading Time:2 minutes
Why you can trust SCMP
Baowu Steel Group, the world’s largest steelmaker, has established an investment fund focusing on carbon-neutral projects to bolster China’s ambitions of getting greenhouse emissions under control.
Advertisement
The state-owned company said in a statement that it aimed to ultimately raise 50 billion yuan (US$7.73 billion), along with its partners China Pacific Insurance, the National Green Development Fund and CCB Financial Asset Investment. The fundraising target for the first phase is 10 billion yuan.
The fund will become the largest of its kind in China, as the world’s top carbon dioxide emitter steps up efforts to meet its carbon neutrality goal in the coming decades.
The fund will pursue investment opportunities in clean energy, green technology, environmental protection and pollution control.
It will also explore high-quality projects in wind and solar energy.
Advertisement
“Steelmakers, as one of the biggest greenhouse gas emitters, face a difficult task in reducing pollution,” said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. “By investing in clean-energy projects, [Baowu] can look to boost its own profitability while, at the same time, utilising some of the technologies developed by the portfolio companies to cut its reliance on coal as an energy source.”
Advertisement