U.S.-China Green Fund Turns Two

(Photo: Laurent Etourneau/EyeEm/Getty Images)


As the war on pollution in China remains a priority, a cooperative effort by the United States and China is helping to provide solutions in this fight. The U.S.-China Green Fund is a commercial private equity venture committed to deploying U.S. green technology and products to support sustainable development in China. The Fund is celebrating is second anniversary, and despite the tension in the bilateral relationship, has stayed true to its mission to promote additional U.S. exports, and remain a profitable endeavor.

The mission of the Fund is to “invest and green China” while striving to foster greater U.S.-China collaboration for sustainable development in China. It is a natural nexus—U.S. companies are leaders in green technology innovations and there is a dire need for them in China. The export and deployment of green technologies can help create greater energy efficiencies, especially in high emission sectors such as buildings. Using U.S. exported technology to help support China’s transition to a low carbon economy is a winning combination.

Paulson Institute Chairman Hank Paulson said in a recent op-ed that “successful market-based use of green tech in China can demonstrate the benefits to other developing countries struggling to solve similar climate challenges,” and this will make a significant difference since China is the world’s largest carbon emitter.   

The Fund has is setting this example. In its second year, the total sales of U.S. green technology and products made through its portfolio companies and strategic partners reached 160 million RMB including:

  • 50,000,000 RMB sales of HVAC, sensors and chillers sourced from United Technologies Corporation and Johnson Control through East Low Carbon, a portfolio company, in energy management contract projects. East Low Carbon is China’s leading platform for integrated environment and energy efficiency management. The company is driving changes in building energy management with innovative technology.
  • 30,000,000 RMB sales of HVAC, sensors and security system from Johnson Controlthrough Hosjoy, a portfolio company, in smart home products. Hosjoy is an integrated service provider for smart homes in China, delivering consolidated services to scale greening of homes.
  • 80,000,000 RMB sales of HVAC, sensors, lighting system and security system from Honeywell International through Baoye Group, a strategic partner,in AVIC Headquarter Tower. Baoye Group is China’s first privately-operated integrated construction company listed on the Hong Kong Stock Exchange focusing on energy-saving and environmentally friendly housing.

Supporting the success of the Fund is the U.S.-China Green Technology Research Institute, a wholly-owned subsidiary of the U.S.-China Green Fund, and strategic industry knowledge partners. The U.S.-Green Technology Research Institute was established to provide the technical expertise for identifying viable green technologies applicable in the Chinese market, as well as helping overcome some of the obstacles that have hampered the success of previous green funds.

The U.S.-China Green Technology Research Institute provides services for the Fund’s investments, including analysis of industrial technology, and support for integration of technological solutions. It also provides guidance to contractors, architects and real estate companies, such as by providing advice on how to install and maintain these products. This aims to address one of the key challenges in China today in that that few understand how to use and deploy these green technologies effectively.

Since the Fund’s establishment, leading U.S. companies in green technology and products, such as United Technologies Corporation, Johnson Controls, General Electric, Honeywell International and Dow Chemical, have worked closely with the Institute to help counsel on the use of their products and by providing technical support.

There are big plans ahead as the Fund begins year three. It will focus onfour key areas:

  • Clean Energy & Energy Efficiency
  • Green Manufacturing & Environmental Protection
  • Green Consumption & Services
  • Green Mobility & Smart Logistics

At the same time, the Fund is concentrating efforts in green cement technology, organic fertilizers and bio-pesticides, air and water pollution monitoring, and wastewater treatment technologies. Green technologies in these areas are increasingly important to combating China’s carbon emissions, while also improving energy efficiency, promoting industrial productivity and restructuring, encouraging cross-border innovation, and creating green jobs.

High-level government attention to the fight against pollution and China’s growing international climate commitments indicate that the drive for sustainable development will undoubtedly continue. And this bodes well for the Fund’s work this year as an important foot soldier in the fight against pollution.