China Energy Management Contract Investment and Finance Trading Platform will officially be launched and start its online operations during the Earth Temple Forum.
This platform uses market mechanisms as important measures to accelerate the promotion of Energy Management Contract, it also uses innovative financial methods as powerful tools to promote energy conservation and emission reduction. All of this is made in order to foster a service industry based on energy reduction and to build a significant environmentally friendly and resource-saving society.
Two of the biggest obstacles encountered during the implementation process of the Energy Management Contract are financial difficulties and information asymmetry. China Beijing Environment Exchange and China Energy Conservation Association Energy Service Industry Committee (EMCA) are launching the Energy Management Contract Investment and Finance Trading Platform to solve the problem of financial difficulties and information asymmetry. The platform also aims to promote Energy Conservation Service Companies to carry out new Energy Management Contract energy saving projects and accelerate the development of Energy Contract Management and Energy Conservation Service Industry while creating the world’s first social fund to enter the field of energy.
Through financial innovation, this platform, with the transfer of future service revenues generated by Energy Conservation Service Companies, will obtain floating capital to develop new Energy Management Contract projects.
Energy Conservation Service Companies have uneven profit-making abilities, some make a lot of profit, others make less and most investors have difficulties in understanding this. However the Energy Management Contract Investment and Finance Trading Platform has an integrated evaluation system, which will comprehensively examine and appraise projects. According to the project’s examination and appraisal, the system will judge and set a price to the project, thus investors will be able to fully grasp the project’s information.
In addition, through this platform, the Energy Conservation Service Industry and the Financial Institutions can link up and integrate their related resources and project information. Through value-added services, investors will have the possibility to exchange information on the platform, Energy Conservation Service Companies will be offered the best support in terms of sourcing projects and funding. Government and businesses will be offered a vast choice of integrated services to operate their transformation towards energy conservation.