"We think that market-oriented PE/VC institutions are very promising.

On the one hand, by constantly exploring the optimal allocation of resources, the pursuit of environment, fairness, social long-term value.

At the same time, choose those who have a great view of the situation, through continuous innovation, under the goal of green and sustainable development, to achieve the win-win situation of social value and economic value. "

Hillhouse is committed to promoting the construction of an academic research platform on climate change, has established the Institute of Industry and Innovation, and plans to support talent training in the fields of climate and new energy. "

"carbon neutralization will bring many new economic growth points, more high-quality employment and innovation opportunities in low-carbon areas, the promotion of economic competitiveness, social development, and the effects of the economic environment. "

"during this period, it is the right time for green equity investment to effectively guide a large amount of social capital to carbon-neutral areas. "

"for enterprises, low-carbon transformation is a historical opportunity to break the inertia of development, to cope with the challenges of environmental change, and to take the initiative to reshape core competitiveness. "

Hillhouse has made a "carbon neutral" technology roadmap on new energy technologies, materials, processes, and the entire green economy chain. In-depth layout of photovoltaic, new energy vehicles and chips and other industrial chains upstream and downstream, can help the development of green enterprises. "

These are the wonderful remarks made by Zhang Lei, founder and CEO of Hillhouse, at the 2021 Economic Summit of the China Development Forum on March 20.

Zhang Lei said that in the direction of helping to achieve the goals of "carbon peak" and "carbon neutralization", market-oriented PE/VC institutions have a bright future.

In addition, Zhang Lei believes that carbon neutralization will bring many new economic growth points and create more high-quality jobs and innovation opportunities in low-carbon areas.

Smart investors sorted out the transcript of this speech and shared it with you.

To help achieve "carbon peak" and "carbon neutralization", market-oriented PE/VC institutions have a bright future.

It gives me great pleasure to discuss with you during the the Spring Equinox season the important issues of green development and helping to achieve the goals of "carbon peak" and "carbon neutralization".

At present, the world is in an important historical period of transition from high carbon to low carbon and net zero carbon. While promoting the "green recovery" of the economy in the post-epidemic era, it also promotes the reconstruction of the value chain in many industries, including energy, manufacturing, science and technology, and consumption. to promote higher quality, fairer, green and sustainable development is a long-term common topic in human society.

In this direction, we think that the market-oriented PE/VC institutions are very promising.

On the one hand, by constantly exploring the optimal allocation of resources, the pursuit of environment, fairness, social long-term value.

At the same time, choose those who have a great view of the situation, through continuous innovation, under the goal of green and sustainable development, to achieve the win-win situation of social value and economic value.

In promoting green development, Hillhouse has been on its way.

As an innovative industrial investment institution, Hillhouse took green sustainable development as an important goal of its long-term development at the beginning of its establishment.

Throughout the cycle, we attach great importance to environmental, social, and corporate governance (ESG) factors as part of our investment decision criteria.

At the same time, through forward-looking industry research, we will continue to increase the distribution of investment in new energy, green low-carbon technology and other areas.

Now, on the one hand, we have invited professional institutions to conduct carbon inspection work on Hillhouse itself and actively launch our own plan "carbon credit".

From me, speed up the promotion of our own operation of low-carbon zero-carbon, to achieve our own "carbon neutralization".

In addition, we have also set up a special climate change investment team to launch a special climate change green fund.

At the same time, Hillhouse is committed to promoting the construction of an academic research platform on climate change, has established the Institute of Industry and Innovation, and plans to support the training of talents in the fields of climate and new energy.

It can be said that we are always on the road in promoting green development.

Difficulties and challenges in achieving carbon neutralization in China

A few days ago, the Industrial Innovation Research Institute of Hillhouse and the Beijing Institute of Green Finance and Sustainable Development released a report entitled "towards 2060 carbon neutrality-focusing on the opportunities and challenges of decarbonization".

We found outIn fact, China faces more difficulties and challenges than developed countries in achieving carbon neutralization.

In this report, we analyze in detail these challenges facing China, except for the time required.

First, because the developed countries have reached the peak of energy ahead of time, while China's energy demand has not yet reached its peak.

In 2019, China's per capita primary energy consumption is about half of that of OECD countries, and its per capita electricity consumption is 60% of that of OECD countries.

We ourselves are still in the middle and early stages of development.

Second, the proportion of industrial energy consumption is high, which has something to do with the fact that China is a global manufacturing factory.

In other words, a lot of the world's carbon emissions are made in China, and China's electricity consumption structure is particularly special. Industrial electricity accounts for 67% of the total electricity consumption in OECD countries, and the distribution of electricity among industrial and commercial residents is more balanced, which is about 1 inch.

Third, our power supply structure is mainly coal, so it is difficult to transform. China's thermal power accounts for 72%, and these areas face a big task.

Fourth, the task of decarbonization technology in transportation, industry, construction and other departments is very arduous.

Fifth, the development of regions and industries is uneven, and there are some fairness problems, how to solve them through the design of economic structure, and so on.

However, we think that it is feasible for China to achieve carbon neutralization and can bring multiple benefits.

It is the right time for green equity investment to effectively guide a large amount of social capital to the field of carbon neutrality.

As a matter of fact, as a developing country, China has always taken the initiative to assume its own responsibilities.

According to official data, by the end of 2019, China's carbon intensity has decreased by about 48% compared with 2005, and the consumption ratio of non-fossil energy in primary energy has reached 15.3%, fulfilling China's foreign commitment target of 2020 ahead of schedule, and China's GDP has increased fourfold in the same period.

Therefore, policy actions to deal with climate change do not hinder economic development, but also help to support the quality of economic development.

Therefore, carbon neutralization will bring many new economic growth points, in the low-carbon field will achieve more high-quality employment and innovation opportunities, bring the promotion of economic competitiveness, social development, the effects of economic environment.

I think in this period, will effectively guide a large amount of social capital to carbon-neutral areas, green equity investment is the right time.

We also hope that more partners will join in the cause of supporting green and low-carbon development.

Low-carbon transformation is a historical opportunity to take more initiative and reshape core competitiveness.

In fact, before the Spring Festival of the year of the Ox, we also issued the industry's first carbon neutralization proposal to Hillhouse's corporate partners.

For enterprises, low-carbon transformation is a historical opportunity to break the inertia of development, to deal with the challenges of environmental change, and to take the initiative to reshape core competitiveness.

Therefore, the promotion of carbon integration has a very important positive significance for enterprises to cope with industrial change, and lays a foundation for the long-term sustainable development of enterprises.

We first take the lead in the Hillhouse invested enterprises to promote carbon neutral planning, turn challenges into opportunities, regard transformation as opportunities, and accelerate the low-carbon transformation of the entire operation.

After the carbon neutralization proposal was issued, many of our invested enterprises responded positively, and we recently held a seminar to continue to discuss with our invested enterprises how to speed up the implementation. no, no, no.

Using science and technology enterprises to help traditional enterprises and traditional economy transform

Finally, I would like to say that in this process, Hillhouse has made a "carbon neutral" technology roadmap on new energy technologies, materials, processes, and the entire green economy chain.

In-depth layout of photovoltaic, new energy vehicles and chips and other industrial chains upstream and downstream, can help the development of green enterprises.

Of course, in addition to the incremental innovation of emerging industries, the stock reform of our huge traditional industries is the basis of the overall economic and social low-carbon transformation, but also more realistic urgency.

At the same time, Hillhouse adheres to the "dumbbell theory" in investment practice, through technology enterprises to help traditional enterprises and traditional economy to transform.

For example, we recently invested in an unmanned agricultural machinery technology, agricultural machinery, which is completely similar to electric cars, while adding self-driving technology to work in the fields.

By the end of last year, their intelligent agricultural products and technologies had served nearly 10 million farmers and 780 million mu of farmland in 42 countries and regions around the world, which in fact provided a good model for rural revitalization.

On this road of continuous innovation, we look forward to working with more colleagues to "Do Good, Do Well" to make the world a better place. Thank you!