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Environmental projects in China set for a big boost

Chinese investment banking specialist London Asia Capital will today announce an agreement with the China Environmental Protection Foundation (CEPF) to bring international investment to environmental projects in the country.

Under the agreement, London Asia will have first refusal on all environmental projects from the CEPF's Collaboration and Development Fund, which raises funds from overseas to invest in China's environmental sector.

Rise in pollution

China's rapid industrialization and heavy reliance on coal and other fossil fuels have caused a dramatic rise in pollution -- eight of the world's 10 most polluted cities are in China, and asthma and other respiratory diseases are rife.

The Chinese government has recently committed itself to a target of generating 15 percent of its power from renewable sour-ces by 2020, compared with 7 percent now, which will require US$150 billion of investment.

Leading investor

London Asia Capital is already one of the leading investment banks specializing in small and medium companies in China, with eight offices throughout the country.

The agreement with the CEPF coincides with its establishment of a specialist environmental division in Freiburg, Germany -- home to much of Europe's renewable technology research.

Cleantech, as the division will be known, will help to transfer European technology to China.

Simon Littlewood, chief executive of London Asia, said that while China lacks access to established renewables technology, many European specialists are looking for new buyers because most of their home markets are saturated.

"Investments into renewables and energy efficiency technologies ... are the best hedge against the economic risks of rising oil prices and declining reserves," he said.
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