Baowu Steel Group , the world’s largest steelmaker, has established an investment fund focusing on carbon-neutral projects to bolster China’s ambitions of getting greenhouse emissions under control . The state-owned company said in a statement that it aimed to ultimately raise 50 billion yuan (US$7.73 billion), along with its partners China Pacific Insurance, the National Green Development Fund and CCB Financial Asset Investment. The fundraising target for the first phase is 10 billion yuan. The fund will become the largest of its kind in China, as the world’s top carbon dioxide emitter steps up efforts to meet its carbon neutrality goal in the coming decades. The fund will pursue investment opportunities in clean energy, green technology, environmental protection and pollution control. It will also explore high-quality projects in wind and solar energy. “ Steelmakers , as one of the biggest greenhouse gas emitters, face a difficult task in reducing pollution,” said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. “By investing in clean-energy projects, [Baowu] can look to boost its own profitability while, at the same time, utilising some of the technologies developed by the portfolio companies to cut its reliance on coal as an energy source.” In a speech at the United Nations General Assembly in September last year, Chinese President Xi Jinping pledged the nation would aim to be carbon-neutral by 2060. Under the 2015 Paris climate agreement , China will work towards hitting peak emissions by 2030, before cutting them to net-zero over the following 30 years. To achieve the targets, Beijing will have to curtail most of the country’s fossil fuel production facilities and drastically increase installation of equipment to harness nature’s clean and renewable energy. In China, the steelmaking industry is the second-biggest emitter of carbon dioxide, behind the energy sector. Last year, China’s steel mills generated 1.9 billion tonnes of carbon dioxide, according to global consultancy Bain & Co. The country is responsible for 10 billion tonnes of carbon dioxide emissions annually, or about 30 per cent of the global total. Baowu was established in 2016 by the merger of Shanghai-based Baosteel Group and its state-owned counterpart Wuhan Iron & Steel. The move was part of a consolidation of large state-owned steel companies aimed at controlling production and reducing overcapacity. Baowu produced 115 million tonnes of steel last year. It said previously that its greenhouse gas emissions would peak in 2023 as it aimed to achieve carbon neutrality by 2050. Beijing launched its national carbon emissions exchange on Friday, in the hopes that trading of emission allowances would become a tool to help cut greenhouse gases.