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The China National Petroleum Corporation Asset Management Company, Ltd. (CNPC-AM), Tianjin Property Rights Exchange (TPRE) and Chicago Climate Exchange (CCX) announced the opening of the headquarter offices of the Tianjin Climate Exchange (TCX), China’s first integrated exchange for trading of environmental financial instruments. As a joint venture between CNPC-AM, the City of Tianjin and CCX, TCX intends to establish China as a pre-eminent center for environmental finance and the application of market-based mechanisms to environmental management and natural resource protection. TCX will design and develop standardized financial products that will advance the stated environmental goals of the 11th Five Year Plan of China to reduce sulphur dioxide emissions and water pollutants, as well enhancement of energy efficiency, among other initiatives. TCX will afford Chinese financial institutions, trading desks and industrial companies an opportunity for linkage to international markets and provide price transparency and world-class product design.
The Tianjin Climate Exchange will establish and operate an electronic emissions trading platform and auction facility based in the city of Tianjin, China. Tianjin is a special development zone designated by the State Council of China as a center for financial innovation, and the development of an emissions exchange is a component of the Binhai Comprehensive Report Plan approved in March 2008. TCX will be located on Financial Square in the heart of Tianjin’s new Binhai economic zone.
The opening event was attended by numerous dignitaries and officials from the local, provincial and national government of China. Also attending were Vice-Mayor Cui Jin Du, Vice-Mayor of Tianjin, Mr. Wang Guoliang, CFO of China National Petroleum Corporation, who also represented the CNPC group; Dai Xiansheng, President, CNPC-AM; and Dr. Richard Sandor, Chairman and CEO of CCX. The ceremony also included remarks by Mr. David Dollar, China Country Director of the World Bank.
Mr. Dai Xiansheng was host of the event and introduced Dr. Sandor to speak on behalf of the founding partners. Said Sandor: “The TCX partnership will combine the significant talents and experience of Chinese experts with the experience and expertise of CCX in the development and establishment of new environmental markets.”
Summing up, Dr. Sandor said: “The Tianjin Climate Exchange three-party venture maximizes the special advantages of each of us: Tianjin has had the vision to establish a center for financial innovation; CNPC-AM has understood the strategic importance of emissions management to its own businesses; and CCX has been a pioneer in establishing new environmental markets worldwide. At CCX, we are significantly proud of our new landmark partnership with CNPC and Tianjin, because it marks the birth of full-fledged environmental markets in China and a historic milestone on behalf of the people of China and the world.”
