UK firm plans China eco-investment

Climate Change Capital, a London-based alternative investment manager, plans to invest five billion yuan (US$732 million) in environmental projects in China, Reuters reported. The projects would extend over the next two to three years and include industrial waste management and clean technology.


Chan Kakeung, managing director and head of China investments for the fund, said the financial crisis offers great opportunity to acquire assets as the prices are cheaper and company owners are having a harder time securing capital. "There are a lot of cheap assets lying out there,” he said. “If you see the right company, this is the best time to negotiate.”


The firm, which manages US$1.6 billion globally, is in discussion with 16 Chinese companies engaged in various eco-initiatives, Chan told Reuters.


In recent years, China’s economic growth has come at the expense of significant environmental damage, including industrial waste, shortages of drinking water and heavily polluted air in cities. For example, one estimate indicates that China may need to devote about one trillion yuan (US$169 billion) over a five-year period to repair its water resources.