CITIC Capital Letter Leaps Up: Economic Activities And Carbon Emission Reduction Are Not In Conflict, And "Carbon Neutrality" Should Be Promoted In A More Positive Way

In his speech, Xin Yuesheng, senior managing director of CITIC Capital and executive partner of private equity investment department, pointed out that carbon neutralization should not be negative carbon neutralization on the premise of reducing economic growth and people's consumption, but should rely on technological innovation, changing the structure of energy and food, creating new high growth industries and improving people's life and positive carbon neutrality.

Xin Yuesheng believes that "carbon" can be understood from two perspectives: "all carbon is energy (generated by consumption), and energy (consumption) has two parts, one is for burning, the other is for eating."

Related to "burning", XINYUESHENG believes that the positive solution is to invest funds into the non fossil energy power generation industry chain, and promote the realization of "carbon neutrality" by transforming the energy structure through the transformation of power generation, transportation, energy storage and application.

In recent years, there has been a similar movement of refusing to travel by air overseas. It is believed that minimizing air travel will help to reduce carbon footprint. Taking this as an example, Xin Yuesheng said, "if the plane is powered by electricity (if it is driven by electricity), then fly with it open."

In fact, the food and Agriculture Organization of the United Nations pointed out in a report more than ten years ago that the greenhouse gases produced by livestock, in terms of carbon dioxide equivalent, accounted for 18% of the total, which exceeded the transportation industry. In addition, it is a major source of land and water degradation.

XINYUESHENG believes that there are artificial meat, artificial milk and other solutions in the field of animal husbandry. Although the price is still high in the early stage of the industry development, with the wider application, the cost and pricing will decline in the near future.

"As an investment institution, we should explore more carbon reduction solutions in a more positive way." He said he expected to be able to focus on the government's proposal of carbon neutrality and carbon peaking, and take into account commercial benefits and social news in a breakthrough way, so as to promote the realization of carbon neutrality in a more sustainable way“ Carbon neutrality is an economic development strategy, and only development can solve the climate problem. " He said.