The fund, to be named the Huaneng Carbon Assets Development Investment Fund Plan, will finance pre-development costs from the launch of the carbon emission reduction project through to registration and issue of the carbon emissions reduction certificate.
China Construction Bank Trust Co, which is a financial organisation in China Construction Bank, will manage the fund.
Each of the participating parties will invest RMB10m ($1.57m), with the fund capped at RMB50m ($7.86m).
Fortune Oil chief executive Tee Kiam Poon said managing carbon emissions will be of growing importance for China in the future.
"Fortune Oil along with its partners are convinced that the Chinese government will take proactive steps to price carbon in its market to incentivise the continued growth of its economy in the most carbon efficient manner possible," Poon said.
