Low carbon businesses at heart of UK trade deals with China

The green deals made in China included a memorandum of understanding between Pilkington Group Limited and Shanghai Yaohua Pilkington. Pilkington has already invested €35 million (£21 million) in a joint venture plant in Changshu to mass produce energy saving glass and is now planning a second such investment with its local partners.

It is estimate that the first plant, which coats the glass to improve its environmental efficiency, will save 70,000 to 80,000 tonnes of carbon per annum when the glass is installed on the outside of skyscrapers in the Shanghai region. Once the second plant is is up and running and the glass is installed in Beijing, it is estimated that 120,000 tonnes of carbon could be saved.

Architectural firm Zedfactory, which specialises in zero (fossil) energy development (ZED), has signed two contracts – one to work on a joint development with China’s largest solar thermal manufacturer, Himin, another with China Beijing Equity Exchange (CBEX) and Jilin Food Group (the second largest food producer in China) to explore solutions for climate change on a 36 square kilometre development in Hainan Province in south China. 

The firm, which has established a presence in China through its involvement with the Shanghai Expo, has also made two other ‘framework’ agreements for the development of low carbon buildings.

Another deal signed this week was a £10 million joint venture between the UK’s Carbon Trust and the China Energy Conservation Investment Corporation to create an enterprise, financed through venture capital, which will introduce UK low carbon technology companies to China. 

A spokesperson for UK Trade & Investment, which provides practical support to help UK companies develop their overseas business, explained that the enterprise will encourage foreign companies to take a stake in the very embryonic stages of UK green tech companies which are developing products and services for China – hopefully in return for long-term reward.

Speaking about these agreements, Lord Mandelson said: “These new contracts not only demonstrate the strength of economic ties between the UK and China, but also our shared commitment for developing a low carbon economy.”

The Secretary of State for Business, Innovation & Skills told a low carbon business solutions forum organised by UK Trade & Investment in Beijing: “Across the board, the UK can offer the knowledge, technology and experience to help our two economies de-carbonise. 

“The UK has world-class climate change research institutions and consultancy services in carbon measurement and management. Our architects and engineers are creating designs for the low carbon cities of the future.”

As well as these business-to-business collaborations, Lord Mandelson signed a bilateral governmental agreement with the Mayor of Changsha, establishing Changsha – which is home to six million people in China’s Hunan province – as the third ‘Sustainable City’, alongside Wuhan and Chongqing. 

The Government believes UK companies are well-positioned to win business opportunities arising from the launch of the Changsha-Zhuzhou-Xiangtan city cluster project by Hunan Government, with an initial investment of £5.5 billion on 134 key projects.

In May, the Carbon Trust signed a £10 million joint venture with the state-owned China Energy Conservation Investment Corporation (CECIC) the aim of which was to accelerate low carbon innovation in China by helping British businesses export low carbon technologies to China and giving financial assistance to UK and Chinese low carbon start-ups in China.