The China Greentech Report TM 2009

1. The China Greentech ReportTM 2009 Overview of Key Findings September 2009

2. Introduction The China Greentech ReportTM 2009 is the culmination of an open source, commercial collaboration of leading organizations Background The China Greentech Initiative: • Includes over 80 of the world’s leading technology companies, entrepreneurs, investors, NGOs and policy advisors • Represents cross section of global community (1/3rd China, 1/3rd North America, 1/3rd rest of world) • Participants provided time, expertise, introductions, resources and funding Open and Collaborative Research Process: • Hundreds of people in China and around the world over a nine month period • Input from Initiative’s partners and advisors combined with dedicated strategic research team • Collected and consolidated data from wide range of Chinese and English sources • Conducted interviews with partners, strategic advisors and other industry experts • Facilitated 21 in-person working sessions (3 per sector) to frame and prioritize issues, test preliminary insights and validate findings

3. Introduction The report addresses important questions facing participants in China’s complex and rapidly-changing greentech markets Key Questions • How should one frame and define the greentech opportunities that exist in China? • What are the most important environmental issues impacting China and what are the forces driving them? • How are China’s government and the international regulatory community responding to these issues? • Which existing and emerging greentech solutions are most attractive for China in the short, medium and long terms? • What are the biggest challenges facing China’s greentech markets? • How might stakeholders overcome these challenges in order to accelerate China’s greentech market development?

4. Key findings The findings are largely optimistic, tempered by the complexity of China’s markets and the challenges remaining to be overcome Key Findings – The China Greentech Report 2009 Source: The China Greentech Report 2009

5. Key findings – 1. market potential #1 With hundreds of solutions across multiple sectors, the potential addressable China greentech market could be US$1 trillion annually China Greentech Market Potential Source: The China Greentech Report 2009

6. Key findings – 1. market potential – economic and environmental pressures China’s greentech markets are driven by continued economic development and the resulting environmental pressures Driven by Economic and Environmental Pressures • Economic Growth – Three decades of formidable economic growth have transformed China into a colossal and resilient economy: • 10% annual growth has created 3rd largest economy and 2nd largest consumer of energy in world • Improved living standards, massive urbanization and emerging consumer market • Resilient economy with world’s largest foreign reserves, 2nd largest stimulus plan and continued growth • Colossal scale in terms of population, infrastructure and energy requirements • Environmental Costs – YetChina’s economic growth has come at significant environmental costs: • Polluted air (largest emitter of greenhouse gases and significant particulate matter) • Strained water resources (limited fresh water resources, high demand, inefficient use and pollution) • Land degradation (desertification and land contamination) • Vision for Sustainable China – China’s economic development will become environmentally sustainable out of necessity • Greentech Environmental Benefits – Greentech solutions hold the potential to greatly mitigate the impact of economic activities on the environment Source: The China Greentech Report 2009

7. Key findings – 2. green transformation – emerging leader #2 The first signs of a green transformation are appearing in China, with a number of greentech segments experiencing rapid growth First Signs of China’s Green Transformation Source: The China Greentech Report 2009

8. China is rapidly ramping up its power generating capacity from renewable sources, and has established ambitious targets 150 Key findings – 2. green transformation – emerging leader #2 China Wind Capacity1, Gigawatts 2002 2003 2004 2005 2006 2007 2008 China Solar Photovoltaic Capacity2,3, Megawatts 2000 2002 2004 2005 2006 2007 2008 Source: 1. Pullen, Angelika et al., Global Wind 2008 Report (Brussels, Belgium: Global Wind Energy Council, 2009), 25 2. Li, Junfeng et al., China Wind Power Report (Beijing, China: China Environmental Science Press, 2007), 15 3. Renewable Energy World, “China’s New Focus on Solar,” May 22, 2009, http://www.renewableenergyworld.com/ 4. National Development and Reform Commission, Medium and Long Term Development Plan for Renewable Energy in China (Beijing, China: NDRC, September 2007); CGTI analysis 8

9. Key findings – 3. government policies #3 China’s government has established policies which positively impact the environment and enable greentech markets Government Policies Enabling Greentech Markets Source: The China Greentech Report 2009

10. Key findings – 4. challenges remain #4 The Initiative identified 12 overall market, technology, financing and regulatory challenges which remain to be overcome Challenges Remain to Be Overcome Source: The China Greentech Report 2009

11. The Initiative identified five overall opportunities to accelerate China’s greentech market development… Key findings – 5. clear opportunities – overall #5 Overall Opportunities to Accelerate China’s Greentech Markets Source: The China Greentech Report 2009 11

12. Key findings – 5. clear opportunities – stakeholders #5 … and clear complementary opportunities exist for each stakeholder to accelerate greentech markets in China Clear Opportunities Exist to Accelerate Greentech Markets Source: The China Greentech Report 2009

13. Conclusion China’s greentech opportunities are tremendous – while challenges remain, clear steps exist to accelerate greentech markets Summary – The China Greentech Report 2009 • Tremendous greentech market potential exists for hundreds of solutions across multiple sectors, driven by China’s continued economic growth and environmental challenges • The first signs of a green transformation are appearing, as China is already laying the foundation for greentech market growth • China’s government is implementing policies that positively impact the environment and enable greentech markets • While China’s greentech markets are generally attractive, market, technology, financing and regulatory challenges remain to be overcome • Clear opportunities exist for stakeholders to accelerate greentech markets and create an environmentally sustainable China

14. This report is a starting point for defining and framing China’s greentech market issues and opportunities Full version of the report to be released by October Join the CollaborativeDiscussion on theChina Greentech website Provide Feedback Executive Overview of report released today Detailed analyses of seven greentech sectors will be released over next few weeks Readers of The China Greentech Report 2009 are invited to join the interactive conversation by visiting www.china-greentech.com: Download electronic copies of the Executive Overview, full report and individual sector chapters Order printed versions of the report Access additional content developed by the Initiative Participate in interactive discussion forums to create, uncover and promote greentech solutions for an environmentally sustainable China and world Suggestions for evolving the content in the report are welcome at feedback@china-greentech.com … Path forward Path Forward – The China Greentech Initiative 14