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April 23 (Bloomberg) -- Sustainable Development Capital LLP and a unit of Aviation Industry Corp. of China agreed to work together on energy-efficiency projects.

AVIC U.K. and London-based SDCL will source technologies from Britain and elsewhere to use in projects in China, the companies said today in a statement. The investments will be part of a planned $200 million U.K. China Energy Efficiency Fund that will be managed by SDCL Asia, a venture with First Eastern Investment Group.

State-owned Aviation Industry Corp. is diversifying into renewables projects as China vows to shut coal-fired power plants and increase clean-energy production after Premier Li Keqiang declared “war” on smog last month.

“China’s industrial base and also its retail, commercial and health-care assets offer an enormous opportunity for energy savings,” SDCL Chief Executive Officer Jonathan Maxwell said at a signing ceremony in London.

To contact the reporter on this story: Louise Downing in London at

To contact the editors responsible for this story: Reed Landberg at Alex Devine, Ana Monteiro

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