China And The US Green Fund Xu Lin: Green Investment Can Stimulate New Kinetic Energy To Raise Capital Environment Remains To Be Improved

"More and more organizations are concerned about green investment, and in fact, it is also a necessary response for our earth and for the community of human destiny." Xu Lin, chairman of the Sino US green Cci Capital Ltd, pointed out in the keynote speech of the Ninth Annual Conference of China's innovation capital.

Xu Lin's speech entitled "adhere to green investment and promote the transformation of green development", shared the social background of ESG investment, the investment standards of Sino US Green Fund and the role of government in investment.

ESG is the three aspect of environmental, social and corporate governance, including information disclosure, rating and investment guidance. It is the foundation of social responsibility investment and an important part of the green financial system.

Why has green investment become so interesting? It is because the challenges of the earth's environment and climate change are becoming more and more serious. Because the population is growing. " Xu Lin said.

In his speech, he appealed to all departments in anticipation of the overall planning and coordination mechanism of the departments in designing policies to form a more favorable environment for equity investment in the whole economic development.

Xu Lin. Data map

Stimulating new kinetic energy

Xu Lin once participated in a discussion on the topic of greenhouse gas emissions organized by McKinsey. The shocking reality strengthened his determination to engage in green investment.

Founded in 2016, the Sino US green fund is positioned as a purely market-oriented and profitable green private equity fund. It is a Sino US cooperation project established by the leader's high visit. It is jointly established by the office of the central financial leading group and the Paulson foundation.

At the beginning of the establishment of the Sino US green fund, the concept of "Green Mobile China" was put forward. The four main investment areas include energy saving and clean energy, intelligence and green manufacturing, green consumption and services, green transportation and logistics.

The green investment equity investment fund, on the one hand, carries out the practice of green investment through marketization and commercialization. On the other hand, it is also building a platform and channel for Sino US folk exchanges.

All along, the general recognition of the market is that green finance is an industry with poor income and highly subsidized by the government. One of the vision of Sino US green fund is to strike a balance between achieving green development and obtaining financial gains. Xu Lin believes that the green future can be a new kinetic energy for China's economic development, rather than the "cost and burden" brought about by the market once "green."

Another major mission of the Sino US green fund is to build a platform for Sino US folk exchanges. Speaking of recent Sino US frictions, Xu Lin said at the scene: "under this background, there is a need for such unofficial non-governmental organizations such as Sino US green fund to deepen exchanges and cooperation between the two countries in the field of business through the cooperation between China and the United States in the fields of green finance, green investment and green development, thus forming an external environment and pressure conducive to improving official relations."

"Industry + technology + finance"

In his speech, Xu Lin said that the two major investment standards of the Sino US green fund are the improvement of resource utilization efficiency and the reduction of pollutant emissions.

The green fund of China and the United States adopts the way of "industry + technology + finance" in investment and post investment services. Specifically, fund investment and post investment team promote industrial transformation and upgrading through the green intellectualization of the industry. We hope that through the industrialization of green technology, we can promote the application of new technologies to achieve the vision of "Green China".

In the pre investment stage, the characteristics of the Sino US green fund were the establishment of an independent Green Technology Research Institute. Xu Lin introduced: "our research institute in the investment stage of adjustment, to our investment enterprises to carry out industrial technology analysis and research; at the same time, in post investment service, to provide enterprises with green technology transformation technology plan, this is our very unique and successful mode."

Speaking of the role of government in the whole green system construction, Xu Lin said that he expects more agencies to jointly promote green investment, and hopes that the government can create better incentives and environment for green investment.

He believes that as more and more institutions invest in green, the green assets on the market will increase. If the government can build, or join hands with market organizations to build a green asset platform, it will make the whole green finance and green investment market more efficient.

During the capital cold winter of 2019, the problem of raising funds for private equity funds continued. Xu Lin believes that the existing banking system is not enough support for SMEs. Private equity investment institutions are important sources of funds for these enterprises. The government should make more considerations from the perspective of the overall economic development environment when setting up the mechanism.