Lehman Brothers Announces CDM Purchase Agreement with China Guodian Corporation

2 July 2008
Lehman Brothers Commodity Services (U.K.) signed a Certified Emissions Reductions (CER) purchase agreement with China Guodian Corporation, the fifth largest power state-owned enterprise in China. This totals to around 4.2 million tons of carbon emissions from two projects, namely Guodian Taizhou and Guodian Beilun, by Year 2012.

This partnership with Guodian ultrasupercritical plants marks Lehman Brothers' first direct and sole CER investment in the China market. It further signifies the Firm's commitment to partnering with Chinese corporates to achieve their goals in Clean Development Mechanism.

Lehman Brothers is a leading player among global investment banks in climate change and traditional and new energy. The Firm has global trading capabilities in all regions, including New York, London, Tokyo, San Paulo, Sydney, Singapore and China. Our CER trading capabilities are also well recognized by the industry. The Yangquan Coal Mine Methane Project that Lehman Brothers co-invested in China was awarded Carbon Finance Transaction of the Year in 2007 by Environmental Finance. Lehman Brothers also plays a key role in thought leadership on climate change. The Firm's Climate Change Council, chaired by Theodore Roosevelt IV, works to facilitate high-quality dialogue among business leaders, policy makers, and academic and non-governmental officials about the political, economic and technological drivers of climate change policy.

Zhizhong Yang, chairman of Lehman Brothers China and Laurent Segalen, global head of the Emissions group spoke and represented the Firm at the signing ceremony. Other attendees at the event included Alistair Morton, counsellor of U.K. Embassy; Peizhang Guo, vice president of China Guodian Corporation; Chao Li, China head of Lehman Brothers Emissions Group; and various reporters from major China media and international newswires.

Laurent Segalen, Global Head of Emissions Group, Lehman Brothers (Front row; right)
Zhizhong Yang, Chairman of Lehman Brothers China (Back row; fourth from the right)
Alistair Morton, Counsellor of U.K. Embassy (Back row; third from the right)
Peizhang Guo, Vice President of China Guodian Corporation (Back row; fourth from the left)
Zhenghua Tang, General Manager of Guodian Taizhou (Front row; left)