Southwest Securities and Chongqing Tianyuan Chemical Co. have completed a carbon emissions allowance repurchase transaction in Fuling District, Chongqing, under the guidance of municipal and district ecology and environment authorities. The deal follows a similar transaction earlier this year between Guoyuan Securities and Jianfeng Chemical — described as the city’s first large-scale carbon allowance repurchase business — and marks what local officials frame as a shift from a single pilot deal to a broader pattern of recurring carbon-finance activity in the district.
Southwest Securities, which became the first licensed brokerage in western China authorized to trade carbon allowances in December 2024, has been building out a dedicated carbon-asset service business as part of its participation in Chongqing’s green finance reform pilot zone. Tianyuan Chemical, based in the Baitao Industrial Park, is a state-owned chemical producer and a key regulated emitter under the city’s carbon market.
The transaction, executed through the Chongqing United Assets and Equity Exchange Group’s carbon trading platform, freed up roughly 240,000 tonnes of the company’s banked carbon assets and generated about RMB 5 millionin financing for energy-saving and decarbonization retrofit projects. Fuling’s ecology and environment bureau said it has now facilitated six such carbon-allowance financing transactions in total, raising roughly RMB 160 millionfor local industry, including a separate cross-compliance-period carbon allowance pledge loan by Jianfeng Chemical that was named a municipal 2025 green low-carbon case. The bureau said it plans to keep expanding repurchase and pledge financing tools with local financial institutions to support industrial decarbonization in the district’s chemical cluster.
Carbon Market Context
- China’s provincial and municipal emissions trading systems have increasingly used allowance-backed financing tools — such as repurchase and pledge arrangements — to let regulated emitters convert banked carbon allowances into working capital for decarbonization projects, a trend consistent with the Fuling transactions described here.
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