Chinese bank, Singapore company set up 1st foreign-owned carbon asset pledge

China Construction Bank's branch in Guangdong and Singapore-based industrial company Royal Golden Eagle have entered into an agreement on the first foreign-owned carbon asset pledge, according to a statement on Monday.

Under this agreement, the two parties will conduct research and innovation in carbon finance products and derivatives, such as carbon emission rights mortgage and pledge financing, carbon trading, carbon bonds and carbon funds through a diverse range of cooperation, it said.

This agreement represents Royal Golden Eagle's second innovative commitment in carbon finance in which RGE will collaborate with financial institutions to facilitate China's efforts to achieve carbon emissions peak by 2030 and carbon neutrality by 2060.

Deng Bo, deputy general manager of China Construction Bank Guangdong Branch, said the carbon finance cooperation agreement will further deepen the relationship between the two parties, which will lead to a sound development period in traditional credit, green finance and cross-border finance.

"The cooperation with China Construction Bank and Bank of Communications will enable RGE to increase carbon asset management efficiency and achieve its emission reduction target," said Wang Jianguo, chairman of RGE China Energy Management Committee. "This marks a new strategic move by RGE to actively participate in carbon emission trading and help bolster China's carbon peak and neutrality goals."