China's first fund for environmental industry was launched Monday in Beijing, aiming to promote investment in the country's environment-related sectors.

The Environment Industry Fund, run by China General Technology Investment Fund Management Corp, is expected to raise 2 billion yuan ($292.8 million) in the first stage.

The company will also set up a parallel $300-million overseas fund.

The money-raising will be finished by the second quarter in 2010 and the money will be invested in water industry, solid waste disposal, renewable energy, energy conservation and emission cuts sectors, said Liu Debing, chairman of the company.

The project came after the Chinese government announced to reduce carbon dioxide emission per unit of gross domestic product by 40 percent to 45 percent by 2020 compared with the level of 2005.

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Li Dang, general manager of China General Technology Group (Genertec), major stakeholder of the fund management company, said that the investment conformed to adjustment in China's industrial investment policy and is expected to reap good returns.

Chinese Premier Wen Jiabao told Xinhua in an exclusive interview Sunday that the government would gear more investment to energy conservation and emission cuts sectors in 2010.

The China General Technology Investment Fund Management Corp was founded jointly Monday by Genertec and investment agencies with a registered capital of 50 million yuan.