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Natural Capital Investment

Background of Fund Establishment

The deteriorating environment pollution like air and water pollution as well as ecological degradation are making environmental improvement top of the agenda. In sustainable development, the Chinese government proposed the development of economy ecological efficiency as a response to the pollution, but it is bottlenecked by funding gap. Engagement of more social capital with common targets will be necessary for the ongoing project.

       

State Policy Orientation

The State Council released ‘Guidelines on Mobilizing Social Capital in Financing Key Innovative Areas’ on Nov. 26, 2014. It encourages private capital to establish industry investment fund investing in ecological and environmental areas through private equity. Government can give support by subscribing to funds with fiscal resources like funding within central fiscal budget.

DeTao—the green development of international wisdom

Since 1999, as one of the initiator of Boao Forum for Asia, DeTao has set the coordinated development of nature, ecology, environment and economy as its direction of work. On 24th February 2014, DeTao initiated the funding of Institute of Green Investment to tackle the environment problems which were getting ever worse. DeTao fully mobilizes the market mechanism and investment measures with the hope to work with renowned experts and scholars home and abroad to explore the possible way to solve China’s environment problems with financial methods.

Since July 2014, DeTao IGI has launched a pilot project in Sanya and explored to compile nature capital balance sheet for the city and co-founded the “Green Emergence” principles and ways for Sanya and Hainan province. Through this project, DeTao established a set of standards and spread them to other cities and regions in China.

In February 2015, DeTao held a close door summit themed “Future New Economy—Sustainable Model toward An Ecological Economy”. The summit released preliminary calculation for Sanya’s natural capital, and announced “Shanghai Declaration for Future New Economy”.

                                          

Picture of the Summit

In March 2015, DeTao was invited to participate in the TV Summit for Natural Capital Investment (a sub forum at Boao Forum for Asia). DeTao took the opportunity to elaborate its understanding and vision on environment, natural capital and economic growth.

                                          

Guizhou, as a province who puts “ecological construction” at its main goal, invited DeTao as one of the sponsors of “Ecological Civilization Guiyang International forum” to deliver keynote speeches to talk about DeTao ecological development story respectively titled as “Outreach Initiative to China and World: Rethink the Relationship between Economic Growth and Ecological Civilization” and “to Establish New Economic Model though Invest Natural Capital”.

                                          

“Ecological Civilization Guiyang International Forum” 2015

                                          

“Ecological Civilization Guiyang International Forum” 2016

At the end of 2016, DeTao started its new journey in ecology, environmental protection and green finance. Based on the experience of Sanya model and the establishment of Guizhou DeTao Ecological Civilization Big Data Center Corporate Limited, DeTao Group worked with Guanshanhu district administration of Guiyang and co-founded “regional ecological P&L management system” which has taken local situations into account. This project established relevant index system based on local ecology, construction, government administration and big data, and the design and planning for regional ecological P&L management strategy, and then used this system to calculate local resource with the index data. DeTao screened key index data which matches policy service and project prediction, and introduced international experience by using DeTao’s own resources and masters’ wisdom and integrated it with local geological and human situation to build regional ecological management system and model and finally developed a dynamic management system which featured with “natural resource +ecological resource” and “internet +big data”.

                                          

Secretary of Guizhou Provincial Party Committee meets George Li (news photo)

The regional P&L management system can effectively promote the sustainable development of regional economy, with the target of both improving ecological volume and economic volume. It precisely assesses the key project in the region, and predicts the development of the construction and relative environmental risks so as to realize both “green ecology” and “economic growth”.

In the future, DeTao will continue to work in the fields of natural capital and ecological environment. By using regional P&L management system, DeTao will help government to promote reform in ecological civilization system and develop certain models which are effective and easy to implement, and can be introduced to other places. By assessing natural capital and key projects, DeTao will promote the efficiency in the use of resources in the pilot area, and ever improve the ecological environment, development quality and profitability, realize both economic growth and environmental protection, create harmonious development between human and nature.

Major Investment Areas

In collaboration with governments across regions, investment will be made in river, forest, river, ocean, and other environmental projects relating to ecological efficiency. Such investment will find solutions to local environmental problems, boost tourism, the real estate market, agriculture, among other major industries, and bring growth to both natural capital and economy.