For the first time, Standard Chartered Group helped Chinese enterprises complete carbon credit spot trading, and joined hands with Muyuan Food to promote low-carbon transformation
Recently, for the first time, Standard Chartered Group assisted a Chinese company in completing a spot transaction of carbon credits, which was completed by Muyuan Food Co., Ltd. ("Muyuan Food") as the seller in the voluntary carbon market.
The voluntary carbon credits involved in the transaction are in line with the "gold standard" generally recognized in the international market, and the transaction is executed by Standard Chartered's team in the United Kingdom.
Muyuan Food's first carbon credit spot transaction
Methane is the second largest contributor to global warming, after carbon dioxide. In November this year, the Ministry of Ecology and Environment issued an Action Plan for Controlling Methane Emissions, pledging to strengthen monitoring and regulation of methane emissions and strengthen global cooperation. Analysts generally believe that related industries such as livestock methane utilization and biomass fuel power generation will see more opportunities, and more companies will benefit from this.
Muyuan Food was founded in 1992 and is headquartered in Henan Province. In April this year, Muyuan Food released the "2022 Green and Low-Carbon Action Report", announcing a phased green and low-carbon action plan and greenhouse gas emission accounting, and clarifying the medium and long-term vision of the enterprise to achieve low-carbon development. Muyuan Foods has installed an animal manure management system for its pig farms to treat manure and wastewater and avoid the emission of greenhouse gases such as methane. In this way, Muyuan Foods generates voluntary carbon credits accordingly and sells them on the voluntary carbon trading market.
Standard Chartered Group and Muyuan Food have a deep consensus on using sustainable financial tools to promote low-carbon development. Standard Chartered Bank (China) Co., Ltd. has provided the first sustainability-linked invoice financing loan to Muyuan Foods this year to support its operational needs such as raw material procurement. In this re-cooperation, Standard Chartered Group helped Muyuan Foods complete the first carbon credit spot transaction, and promoted Chinese enterprises to accelerate the low-carbon transformation through diversified financial instruments.
Lu Jing, Vice President and Managing Director of Corporate, Financial Institutions and Commercial Banking of Standard Chartered Bank (China) Co., Ltd., said: "We are delighted to help Muyuan Foods complete this carbon credit transaction. As a leading enterprise in China's modern agriculture and animal husbandry, Muyuan Food has been playing an important role in the field of low-carbon and sustainable development. The successful completion of the transaction also benefited from the cooperation of Standard Chartered Group's teams in Chinese mainland, Hong Kong and the United Kingdom, reflecting Standard Chartered's unique advantages in green and sustainable finance and carbon market trading. We also look forward to continuing and deepening cooperation with Muyuan Food to achieve our 'carbon neutrality' vision." ”
Standard Chartered Group takes pragmatic actions to develop its "carbon" path
The climate crisis is reflecting the dilemmas and challenges faced by all mankind. The two-week UN Climate Conference 28 (COP28) is being held in Dubai, United Arab Emirates, on a record scale of more than 80,000 people, bringing together political decision-makers and climate activists from around the world to spark global ambition on climate change and potentially create historic outcomes.
Issues such as the credibility of voluntary carbon markets and carbon offsets-related transactions were among the key topics of COP28. At present, the global voluntary carbon trading market is booming. The monetary value of the global voluntary carbon market is expected to reach tens of billions of dollars by 2030. The Ministry of Ecology and Environment (MEE) has recently released draft rules and guidelines for China's Certified Emission Reductions (CCER), which means that China's voluntary carbon market is on the verge of reopening and will create huge green market opportunities in the future.
Yang Jing, Vice President and General Manager of Financial Markets Department of Standard Chartered Bank (China) Co., Ltd., said: "The voluntary carbon market is an important supplementary means to achieve the dual carbon goals, and its market-based incentive mechanism can help promote the low-carbon development of enterprises. We are pleased to help Muyuan Food enter the international voluntary carbon trading market through this transaction. Standard Chartered has extensive experience and an outstanding team in the carbon market, and we look forward to continuing to provide professional financial support for Chinese enterprises to participate in the international voluntary carbon market." ”
Standard Chartered operates across 52 of the world's more dynamic markets, serving customers from 116 markets. Green and sustainable finance is one of Standard Chartered's strategic priorities. Standard Chartered has committed to mobilising US$300 billion for sustainable financing by 2030 and achieving net-zero emissions from its financed operations by 2050.
As an international bank that regards green and sustainable finance as one of its strategic priorities, Standard Chartered Group will provide financial support to enterprises willing to enter the international voluntary carbon trading market with unique advantages, continue to deepen the industry and help more Chinese enterprises to join hands in the green development of the "carbon" road and promote the process of low-carbon development.
