The primary task of capital is to identify and occupy the main waterway of the times. At present, renewable energy has completely moved from the edge to the center, becoming the absolute main track for global capital allocation. In China, this trend is particularly significant. At the beginning of 2025, China's non-fossil energy investment in total energy investment exceeded the 80% mark for the first time, reaching 81.7%, marking the establishment of the dominant position of new energy investment. Among them, new installed capacity of wind power and photovoltaics contributed nearly 90% of the new installed capacity of electricity, and distributed photovoltaics showed explosive growth. Globally, individual investment in solar photovoltaic is expected to reach an astonishing US$450 billion in 2025, becoming the largest single field of investment in the world. This is not just a "green sentiment", but also a purely economic choice: photovoltaics and onshore wind power have become the cheapest sources of electricity in most regions of the world, with their internal rate of return on investment (IRR) stable at 6%-8%. The range has the competitiveness to compete with or even surpass traditional energy sources. Capital is pouring into this area in pursuit of deterministic growth and long-term stable cash flow

The intermittent nature of renewable energy has created the demand for supporting investment to reshape the entire energy system, which constitutes the second high-value place for transformation. If power generation assets are "water sources", then power grids, energy storage and flexibility resources are the "water pipes" and "reservoirs" that determine whether "water resources" can be used efficiently. Currently, global power grid investment is approximately US$400 billion per year, but it still lags behind the deployment of renewable energy and the growth of power demand. In China, investment in power grid projects increased by 33.5% year-on-year from January to February 2025, which is only the beginning of a wave of making up for shortcomings. At the same time, investment in power system energy storage is expected to reach US$66 billion in 2025, and has spawned a diverse technology track including pumped energy storage, electrochemical energy storage, and hydrogen energy storage. In addition, investments to improve system flexibility such as coal-fired power flexibility renovation, gas-fired peak shaving power stations, and demand-side response also showed an internal rate of return of more than 9%. These areas together constitute a "wooden barrel shortcoming" that must be filled in. Their investment scale is huge and has rigid demand attributes, making them an indispensable part of the capital layout.

Energy transformation is not a static asset replacement, but a dynamic process driven by continuous technological innovation, which creates sustained opportunities for capital to capture excess returns (Alpha). Investment opportunities run through the entire industry chain: upstream is the research and development of core technologies such as photovoltaic cell efficiency breakthroughs, large-capacity wind power blades, and low-cost electrolytic cell hydrogen production; the midstream is intelligent manufacturing and scale expansion. For example, investment in China's photovoltaic manufacturing industry surged by 45.2% year-on-year in early 2025; downstream extends to the huge energy service market, including intelligent operation and maintenance of power stations, virtual power plant (VPP) aggregation, carbon asset management and trading, etc. Rapid iteration of technologies (such as perovskite solar cells and sodium-ion batteries) continues to reshape the competitive landscape, bringing rich returns to capital early identification and investment in the next generation of leading technologies. In addition, the deep integration of digitalization and artificial intelligence is allowing the energy system to evolve from a collection of "dumb devices" to a predictable, optimized, and interactive smart network, opening up a new software and service market.

The carbon neutrality goal has given rise to new market mechanisms and financial instruments, the core of which is to quantify, price and trade "carbon emission rights" and "environmental value". The global carbon market is expanding rapidly. China's national carbon market covers 45% of corporate emissions. Market mechanisms are playing an increasingly important role in emission reduction. Carbon prices not only provide direct economic incentives for emission reduction actions, but also create a new asset class and risk management tool. Around this, green bonds, ESG (Environmental, Social, Governance) investment funds, transformation financial products, etc. are booming. Through green finance channels, capital can more accurately identify and empower companies that perform well in environmental performance or are undergoing active transformation, thereby obtaining financial returns due to "green premiums" or avoiding "brown discounts". This marks that the capital evaluation system is evolving from a single financial indicator to a comprehensive value indicator that integrates environmental externalities.

From a strategic perspective of the country and industry, the transition to renewable energy means reshaping the cornerstone of energy security and industrial competitiveness. Excessive reliance on fossil fuel imports is a major source of geopolitical risks and economic vulnerability. Vigorously developing local renewable energy combined with energy storage technology can significantly improve energy self-sufficiency and supply chain resilience. More importantly, the renewable energy industry itself-including photovoltaic panels, wind turbines, energy storage batteries, and smart grid equipment-has become a new focus of global high-end manufacturing competition. China has established world-leading industrial cluster advantages in the fields of photovoltaics, wind power, and electric vehicle batteries. Investing here is not only investing in energy, but also investing in a country's core competitiveness and strategic autonomy in the future global industrial landscape. The long-term security premium and industrial dominance value it brings cannot be measured by simple short-term financial model.

6. Civilization-level impact: The ultimate gift of carbon neutrality to human society Finally, we must transcend a narrow financial perspective and recognize the far-reaching impact of carbon neutrality on human civilization-this is precisely what capital can participate in. A great narrative of long-term value and moral legitimacy. First of all, it is directly related to the foundation of survival: by significantly reducing emissions, curbing global warming, reducing the frequency of extreme weather events, and protecting biodiversity, we are guarding a livable planet for future generations. Second, it brings broad public health benefits: reducing fossil fuel burning will significantly reduce air pollution, significantly reduce related respiratory and cardiovascular diseases, directly improving human well-being and saving huge medical expenses. Finally, it leads to a more sustainable and equitable development model: the distributed nature of renewable energy helps narrow the energy access gap and promotes rural revitalization and balanced regional development. To sum up, renewable energy and carbon neutrality are by no means just an environmental protection cost, but a super investment theme that combines technological progress, industrial upgrading, financial innovation and civilization reshaping. It not only provides full-chain market opportunities from power generation, transmission and distribution to energy storage and services, but also gives birth to new value systems such as carbon markets and green finance, which is more related to national energy security and the long-term future of mankind. For capital, actively participating in it means not only capturing a growth dividend of trillions of dollars and lasting for decades, but also deeply integrating the logic of capital with the grand narrative of the progress of human civilization to achieve financial returns and The unity of social values. This is undoubtedly a historic opportunity and responsibility given to forward-looking capital in this era.