Apple to Jointly Invest $300 Million in China to Initiate a New Clean Energy Fund
Apple Inc. announced its plan to invest $300 million along with 10 suppliers in a China Clean Energy Fund on July 12. A new “first-of-its-kind investment fund” in the country, the new energy fund aims to connect suppliers with renewable energy sources.
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The money will be invested throughout the next four years into developing clean energy projects that will produce more than 1 gigawatt of renewable energy in the country. The amount generated is equivalent to powering nearly 1 million homes.
Apple has been continuously working towards reducing its carbon footprints around the world. Since 2011, Apple has reduced the amount of greenhouse gas emissions from its worldwide facilities by 54 percent. Since 2014, all of its data centers have been powered entirely by renewable energy.
In April, Apple announced that all of its global facilities – including retail stores, offices, data centers and co-located facilities in 43 countries – are now powered 100 percent by clean energy. At the time, Apple had 25 renewable energy projects in operation and 15 more in construction in countries such as the U.S., Japan, Denmark, and Singapore.
Keen to involve its suppliers, Apple has recruited over 23 of its suppliers to commit to running on 100 percent renewable energy. More than 85 suppliers have also signed up for Apple’s Clean Energy Portal, an online platform that helps suppliers find clean energy solutions that are also commercially viable around the world.
The suppliers to participate in the new fund include Chinese manufacturers Pegatron and Luxshare-ICT. The former assembles products including iPhone at its two factories in Shanghai and Kunshan in China, while the latter is a supplier of Apple accessories whose production for Apple is predominantly located in East China. Other participants include American suppliers Corning Incorporated and Jabil, as well as Catcher Technology, Compal Electronics and Wistron, which are all headquartered in Taiwan.
The announcement comes at a breaking point in U.S.-China trade relations. Apple seems to be in the good books with the Trump administration as iPhones were exempt from the new U.S. tariffs despite being assembled in China. In China, Apple have created and supported 4.8 million jobs as well as committed to spending $500 million in R&D, according to their announcement released in China in March.
The new China Clean Energy Fund could be another move to make sure that the company will not be caught in the ongoing U.S.-China disputes.
Featured Image Source: Apple.