China ESG - Weekly News: Volkswagen to buy credits from Tesla in China for compliance purpose

Updated: Apr 11, 2021

BlackRock, Vanguard among 40 firms to join global net-zero pact

BlackRock, Vanguard and 41 other global fund houses are the latest firms to have joined a global investor initiative that aims to achieve net-zero emissions for their portfolios by 2050, in line with the Paris Agreement on curbing global warming.

The fund managers, which together oversee about US$22.8 trillion in total assets, join more than 30 other managers that have already signed up to the Net Zero Asset Managers Initiative, with an aim to limit carbon emissions across all their investment portfolios over the next three decades.

Source: Ignites Asia

Volkswagen to buy credits from Tesla in China to comply with environmental rules

Sources told Reuters that FAW-Volkswagen, a joint venture between Volkswagen and China's FAW Group, has agreed to purchase new energy vehicle credits from Tesla to help meet environmental protection regulations.

This is the first such transaction that the two companies have been approved to report in China, highlighting the arduous task facing Volkswagen in the process of transforming its huge gasoline vehicle manufacturing business into a leader in electric vehicles that can compete with Tesla.

They have the purchase of new energy points to ensure that the overall target is combined with the regulations, but such transactions are usually carried out between subsidiaries that have the same major shareholder.

Source: Reuters

China: Public consultation on the "Interim Regulations on the Management of Carbon Emissions Trading

On March 30, 2021, in order to give full play to the role of the market mechanism, promote greenhouse gas emission reduction, and achieve the carbon peak goal and carbon neutrality vision, the General Office of the Ministry of Ecology and Environment organized the drafting of the "Interim Regulations on Carbon Emission Trading Management (Draft Modification) Draft)", now soliciting opinions. The deadline for soliciting opinions is April 30, 2021.

Source: Ministry of Ecology and Environment

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