What is reported to be China's first private equity fund focused on the country's low carbon economy, the ZheShang Nuohai Low Carbon Fund, has been formally established.
Launched by ZheShang Venture Capital and 27 partners, the ZheShang Nuohai Low Carbon Fund has been raising funds since January 25, 2010, and has raised a total of about CNY220 million in the first round. The money, according to local media reports, will be used for investments in fast growing and innovative companies in the energy conservation, environmental protection, and new energy sectors.
In addition, ZheShang Venture Capital is going to set up a CNY5 billion low carbon fund with Hangzhou municipal government to address the low efficiency problems faced by current funding.
According to Hua Yeyu, the president of ZheShang Venture Capital, ZheShang Venture Capital will begin to raise the second round of funds in 2011. In the meantime it will submit a feasibility report on its cooperation with Hangzhou government.