Hong Kong firm Ben McQuhae buys Chinese carbon credits

Hong Kong firm Ben McQuhae buys Chinese carbon credits

The boutique firm becomes the first offshore buyer of China's carbon emissions offset credits to demonstrate the scheme's enormous market potential

Hong Kong-based ESG-focused boutique firm Ben McQuhae & Co has become the first offshore buyer of China's carbon emissions offset credits.

The idea of the firm behind the move is to demonstrate the scheme's enormous market potential. It hopes that it will help promote Hong Kong as an emissions trading centre.

The firm, launched by the former Jones Day partner Ben McQuhae in February this year, teamed up with former Hong Kong undersecretary for the environment Christine Loh to purchase nearly 10,000 tonnes of China Certified Emission Reductions (CCERs) units from ecological solar energy, sand control and power generation demonstration project in the Kubuqi Desert run by China's Elion Group.

AEX Holdings, which aims to build a neutral carbon offset trading platform in Hong Kong, facilitated the deal.

McQuhae had launched the firm intending to become the world's first firm exclusively focused on sustainability law, working on transactions and other initiatives related to climate, biodiversity and innovation and choosing its work based on the UN Sustainable Development Goals.

China began operating its emissions trading scheme, the largest of its kind in the world, last month. Its 'cap and trade' model is initially confined to coal- and gas-fired power companies, which are issued with emissions allowances they can either trade or purchase depending on their carbon footprint.

"High integrity carbon credits are essential to the voluntary carbon market and the net zero carbon transition. For us, climate action speaks louder than words and I am really happy to contribute to driving this important agenda by helping design and close this first trade. Solutions require innovation and for that I congratulate our partners AEX and Elion," McQuhae said.

The credits whose price was undisclosed, are expected to offset Ben McQuhae & Co's emissions. The firm has estimated that each member of the team has a carbon footprint of 3.39 tonnes per year. It is already announced the implementation of a Decarbonisation Strategy.

Jessica Ha, Ben McQuhae & Co's associate, has said that the primary purpose of the transaction was to demonstrate carbon trading's "enormous market potential – with the right projects, willing contracting parties and some thoughtful drafting".

"We want to put the spotlight on the importance of high-quality China originated carbon credits... and to demonstrate the important role offshore financial centres such as Hong Kong can play in developing the voluntary carbon market according to international best practices," Jessica Ha added.