Ben McQuhae & Co, an ESG-focused boutique, has achieved a significant milestone by becoming the first offshore buyer of China's carbon emissions offset credits. The firm recognises the enormous market potential of this scheme and aims to play a key role in promoting Hong Kong as a leading emissions trading centre. In collaboration with former HK environment undersecretary, Christine Loh, Ben McQuhae & Co successfully acquired nearly 10kt of China Certified Emission Reductions (CCERs) units from a ground-breaking ecological solar energy, sand control, and power generation demonstration project in the Kubuqi Desert, operated by China's Elion Group. This significant transaction was facilitated by AEX Holdings, which is dedicated to establishing a neutral carbon offset trading platform in Hong Kong.
Market Expectations and Overseas Investment
Due to the temporary suspension of the CCER registry by the Chinese government in March 2017, the Elion project did not directly receive the CCERs from the government. However, Ben McQuhae & Co, along with other investors, are optimistic that China will resume issuing credits in the coming year, with new-energy projects aligning with global standards. For overseas investors, the Chinese carbon trading market represents a leap of faith in its current stage of development, as they place trust in the market's potential and future growth.
Promoting Hong Kong as an Emissions Trading Centre
Ben McQuhae & Co's landmark achievement not only highlights its confidence in China's carbon trading market but also underscores its commitment to positioning Hong Kong as a prominent hub for emissions trading. By participating in this historic transaction, the firm aims to contribute to the growth and recognition of Hong Kong as a major player in global efforts to address climate change and promote sustainability.
Ben McQuhae & Co's pioneering role as the first offshore buyer of China's carbon emissions offset credits demonstrates the remarkable market potential and emerging opportunities in the Chinese carbon trading market. With its focus on ESG principles and dedication to promoting Hong Kong as an emissions trading centre, the firm is driving positive change in the industry. As China resumes issuing credits and new-energy projects meet global standards, the Chinese carbon trading market holds immense promise for overseas investors, marking a significant milestone in the pursuit of a sustainable future.
