(Yicai Global) Nov. 10 -- The Beijing Environment Exchange and US-China Green Fund will set up a CNY10-billion (USD1.51-billion) low-carbon fund in Xiong'an New Area in the Chinese capital's neighboring Hebei province, Securities Times reported.

China's low-carbon development and its response to climate change have made remarkable achievements in recent years, the report added. The National Development and Reform Commission, the country's top macroeconomic planner, has submitted to the State Council, China's cabinet, a plan to kick off a national carbon emissions trading market.

Some agencies predict that the total market cap of a carbon emissions quota trading market in the country could reach CNY120 billion. If futures and other derivatives are considered, it could soar as high as CNY500 billion (USD75.3 billion).

The low-carbon fund will help find projects that are suitable to be built and developed in Xiong'an, said Zhu Ge, chairman of Beijing Environmental Exchange, adding that it will assist the region in bringing in and commercializing green technologies.

The fund will invest in high-quality projects in the field of low-carbon energy saving and environmental protection both at home and abroad to accelerate the popularization of green energy and environmental protection, said Dr. Bo Bai, chief executive of the US-China Green Fund. The funds will accelerate the construction of green and smart cities, he added.

When the two agreed to start the fund, they also signed a memorandum of cooperation with Huayuanda Electric Power Engineering Co. and US-based GreenCert.