China CDM Fund is established for addressing climate change. Through supporting and facilitating China’s action in this area, CDM Fund makes great contribution to China’s economic and social development and sustainable development of the world. The establishment of CDM Fund and its work is an innovative extension of international cooperation for tackling climate change. It helps bring CDM cooperation from project-level to country-level and better contribute to sustainable development of the country and the world
Establishing CDM Fund is a pioneering work of the Chinese government. The Fund is an innovative mechanism of financing and action for tackling climate change, and as an unprecedented organization, it will be an excellent example for global climate cooperation. The establishment of the Fund shows how much the Chinese government prioritizes climate change and supports related industrial development
In Oct.2005, the central government started preparation for the Fund and relevant government agencies fully cooperated in the process. In Aug.2006, the State Council approved the establishment of CDM Fund and its management centre. In Nov. 2007, Ministry of Finance and National Development and Reform Commission (NDRC) jointly launched the operation of CDM Fund. In Sep.2010, upon approval of the State Council, Ministry of Finance, NDRC and other ministries jointly promulgated Regulation of China CDM Fund, according to which the Fund will operate in full swing.
China CDM Fund is a public institution that integrates government and market functions. The mandate of the Fund is to support China’s effort to address climate change and promote social and economic sustainable development.
China CDM Fund is governed by the Board of China CDM Fund and managed by China CDM Fund Management Centre. The Board is an inter-ministerial deliberative organ, which is comprised of NDRC, Ministry of Finance, Ministry of Foreign Affairs, Ministry of Science and Technology, Ministry of Environmental Protection, Ministry of Agriculture and China Meteorological Administration. CDM Fund Management Centre is responsible for collection, management and use of the funds and is affiliated to Ministry of Finance.
The Board of China CDM Fund reviews the following items: (1) management regulations; (2) strategic planning of the Fund, including annual budget plan; (3)application for grants and investments; (4) annual budget and accounting; (5) other major undertakings. All of the items shall be examined and approved by the Board of CDM Fund and submitted to NDRC and Ministry of Finance for their approval.
China CDM Fund Management Centre performs the following duties: (1) draw up fund regulations on management and operation; (2) raise funds; (3) manage the funds and carry out investments and wealth management activities; (4) formulate and implement annual budget and accounting of the Fund; (5) supervise and manage the operation of projects supported by the Fund; (6) report major business activities of the Fund to the Board of CDM Fund; (8) other activities that serve the purpose of the Fund.
Funding Sources and Operation
The establishment and operation of China CDM Fund is undoubtedly a new impetus for China’s effort to address climate change.
The funds mainly come from: (1) national revenue from CDM projects; (2) operating revenue; (3) donations from domestic and international institutions, organizations and individuals; (4) other sources.
China CDM Fund's business focuses on grants and investments. It uses grants to support activities in climate-related capacity building and promotion of public awareness. Its investments mainly support industrial activities contributing to addressing climate change. CDM Fund develops wealth management activities through bank deposits and purchase of treasury bonds, financial bonds and corporate bonds, etc.