BP and Elion Resource Group Co. deepened their partnership by signing a carbon emission purchase contract in Beijing for Chinese Certified Emissions Reductions (CCERs) from the forestry sector.
Through the purchase of CCERS, BP will support the existing carbon stocks on nearly 1,400 square kilometres of desert oasis in the Inner Mongolia Kubuqi Desert.
The agreement will also provide further support to Elion to develop projects on ecological restoration in China. The Kubuqi desert, the seventh largest desert in China, is 800 kilometres away from Beijing.
To date, Elion has devoted 30 years to the restoration of Kubuqi's ecosystem and has undertaken a series of China's national eco-projects, including the Three-North Shelter Forest Program and the 2022 Beijing Winter Olympics project, while expanding its business in Belt and Road countries.
The importance of preserving forests to combat climate change was formally recognized in the Paris COP 21 Agreement, which explicitly states that forests are a critical carbon absorber.
"Elion, as a leading Eco-company in China, has developed the internationally recognized Kubuqi Model, which combines the support of government policies and the investment of private sectors," Wang Wen Biao, chairman of Elion Group, said in a statement. "I see it as a platform to attract business partners worldwide to participate in Chinese markets."
"Our growing global environmental products business is investing in high-quality carbon offset projects worldwide," added Janet Kong, CEO Eastern Hemisphere, BP Supply and Trading.
"BP has been actively participating in emissions trading in China since inception. We see its carbon markets continuing to grow and playing a more important role in emissions trading in the future. Through leveraging our global experience and industrial insights, we plan to continue to support customized carbon asset management to our Chinese partners, such as Elion as they pursue environmental and sustainable development."
Elion is helping to accelerate the development of China's green finance through the design and deployment of tools to help promote social capital investment into local environmental projects, the company said. The new collaborative effort between Elion and BP showcases how innovative commercial arrangements help support the development of this industry.
Through its investment in projects that reduce emissions and generate environment credits, BP's Global Environmental Products business uses these environmental credits in carbon pricing systems around the world.