Citi helps develop Chinese renewable standards

Memorandum of understanding will enhance investor confidence in the renewable energy sector

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Citi announced a memorandum of understanding (MOU) with the China General Certification Center (CGC) in September to advance the development of China's renewable energy sector.

The MOU was signed at the US-China Renewable Energy Forum in Washington, DC. Citi and the CGC hope to work together to enhance investor confidence in the renewable energy sector. This will involve the exploration and promotion of common standards, as well as the testing and certification of advanced technologies.

"Citi is pleased to enter this understanding with the China General Certification Center," said Michael Eckhart, Managing Director and Global Head of Environmental Finance at Citi.

"Technical standards are increasingly important as the wind turbine industry goes global, with Chinese equipment being installed in many countries," he added. "It is very important to a global financier like Citi to understand the standards, and to have a cooperative relationship with standards agencies like CGC so that our due diligence can be accurate and thorough."

Citi and CGC hope to pursue joint research on the link between technical standards and financial services in the renewable energy field.

"As improvements in technology have driven down costs in the renewable energy sector, wind and solar energy have been earmarked for large-scale development," said Qin Haiyan, General Director of CGC.

"With increasing investment in this space, involvement of banks and other financial institutions becomes more important. As a professional technical service provider, CGC is willing to work closely with Citi to address concerns about capital risks and investment returns in the sector through the development of standards, testing and certification in order to promote the growth of renewable energy."

The MOU sets forth the agreement in principle of the parties concerning the project and related activities.