OREANDA-NEWS. April 04, 2011. ICBC has recently signed a partnership agreement with Beijing Tianrun New Energy Investment Corporation ("Tianrun New Energy"), as related by ICBC today. The agreement stated the two parties working together on the financial market services focusing on projects related to carbon emission right. The agreement marks the official launch of ICBC services in the trading of carbon finance instrument (CFI), also a move to reinforce ICBC's market dominance in this area.

Under the agreement, ICBC will provide a basket of carbon finance products and services for Tianrun New Energy's projects on carbon emission right, helping the Company in the project implementation, and increasing the negotiation ability of domestic energy-reduction, eco-friendly companies in the global carbon market, reported the press-centre of ICBC.

Carbon finance facilitates the reduction of greenhouse gas emissions through various financial system, arrangement and trading activities. Worldwide there has been fast growth in the carbon finance service which is related to the transaction and investment on carbon emission rights and its derivatives in recent years. In China, green development is one important subject of the "12th Five Year Plan". As the world's largest emission-reduction country, China offers good market potential in the trading of carbon emission rights and carbon finance services.

Against this background, it is of great significance to the progress of China's carbon emission right market by having ICBC and other commercial banks in China as the market participants through the launch of the trading service for carbon finance instrument. Tianrun New Energy, a wholly owned subsidiary of the Xinjiang Goldwind Science and Technology Co. Ltd and an undisputed leader in China's wind power industry, is a company engaged in the investment, development, construction, operation and technical services of wind power plant. Being a green energy developer, over the years Tianrun New Energy has attached high importance and actively involved in low carbon efforts since its inception. The partnership of the two parties to start CFI trading not only represents one important measure of commercial banks to execute the "12th Five-Year" Plan and embrace the philosophy of low carbon financial services, but offers greater help to China's financial institutions and companies to understand the global market rules,accumulate experience and resources to join and develop China's carbon emission right market.

An executive with ICBC said, after growth in the last few years, ICBC now offers a range of global market product line of different categories: interest rate, exchange rate, credit loans and commodity. The launch of trading service for carbon finance instrument is a new member to the commodity category of ICBC global market product line, expanding the product and service range to better compete in the market. More important, in recent years ICBC has been dedicated to be a resource-saving, eco-friendly "green bank" following a coordinated approach and "scientific development". Being a large commercial bank to perform its social responsibility, ICBC advocates green, low-carbon operation, effectively pushes efforts to save energy and reduce emission while lowering its operation cost, as well as supports and promotes ecological environment protection.