The Carbon Trust and the China Energy Conservation Investment Corporation (CECIC) today announced that they will work together to explore opportunities to reduce carbon emissions in China. 

The Carbon Trust, the independent company set up by the UK Government to accelerate the move to a low carbon economy, has signed a memorandum of understanding with the CECIC, an organisation founded by the Chinese State Council to promote and lead the advance of the energy efficiency and environmental protection industries in China. The two organisations will collaborate on a series of feasibility studies looking into the carbon footprinting of Chinese businesses and products, as well accelerating low carbon technology development in China.

The first study will measure the carbon footprint in the supply chain of up to ten Chinese manufactured products.  It will use the Publicly Available Specification (PAS) 2050, the standard which is being developed by the Carbon Trust, the UK Department for Environment, Food and Rural Affairs (Defra) and BSI British Standards to assess the lifecycle greenhouse gas emissions of goods and services.  

Another study will explore the prospects for accelerating low carbon technology development in China including helping UK clean energy technology companies develop markets in China through initiatives such as incubator business support and the development of environmental technology industry parks.

Following the completion of the projects it is hoped that a joint venture between the Carbon Trust and CECIC will be formed to establish a product carbon labelling scheme in China and to develop commercial clean energy opportunities for new and emerging technologies and businesses.

David Miliband, Secretary of State for Foreign and Commonwealth Affairs, said:

"This new partnership is an important contribution to building a global low carbon economy. The core carbon challenge is to bring down the costs of low carbon goods and technologies as compared to the high carbon alternatives.  By working together on common standards and technology development, the UK, and China have the opportunity to drive down the costs of low carbon goods and technologies, making it easier for global firms and consumers to make climate-friendly choices. I'm delighted our Embassy in Beijing is working to support the development of this partnership."

Tom Delay, chief executive, Carbon Trust said:

"China has a crucial role to play in accelerating the move to a global, low carbon economy and represents an exciting new market for clean technology businesses.  We believe our approach to low carbon technology innovation, coupled with CECIC's expertise in clean energy in China, will open up new market opportunities for Chinese and UK companies at the cutting edge of carbon reduction.

"The prospect of establishing a carbon labelling scheme in China reflects the growing demand from businesses across the globe to provide consumers with transparent information about the carbon impact of their buying decisions.  We look forward to working with the China Energy Conservation Investment Corporation and establishing a new, international approach to help business tackle climate change."

Mr. Wang Xiaokang, the President of CECIC, said:

"As the only national investment corporation specialized 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 economy in our respective countries. We share the same important mission of pushing forward energy conservation and emission reduction.

"We highly appreciate the important role the Carbon Trust plays in the building of low carbon economy in the UK. And we look forward to the new achievements brought about by the bilateral cooperation between our two organizations.

"We are fully convinced that the MOU provides us opportunities to form a closer cooperation which will let us complement each other and achieve a win-win."