In the wake of the climate conference in Copenhagen late last year, China's first environmental industry fund was launched on Dec 28 in Beijing. This is the first fund of its kind in China and is to come under the auspices of the China General Technology Investment Fund Management Corp.

As part of a bid to promote investment in the country's environment-related sectors, the fund is expected to raise 2 billion yuan in its first phase. A parallel $300 million offshore fund will also be established, serving the water, solid waste disposal, renewable energy, energy conservation and emission reduction sectors. This fund will be introduced before the second quarter of 2011.

The fund manager, the China General Technology Investment Fund Management Corp, is located in Beijing's Lize financial business zone. It is now established as the major stockholder and lead partner for the funding initiative.