Research On Green Asset Securitization Financing For Power Companies

China has incorporated peak carbon and carbon neutral into the overall layout of economic and social development and ecological civilization construction.Driven by the "double carbon" target,the power industry is accelerating the construction of a new power system with new energy as the mainstay.In order to achieve low-carbon transformation,more and more power enterprises are financing through green asset securitisation.However,the current share of green asset securitisation financing in the overall financing scale of society is relatively small,and some entities lack understanding of the issuance process,conditions,policy support and effects of green asset securitisation products,which limits the promotion and application of green asset securitisation as an innovative financing method.Based on this,this thesis will take the two issues of green asset-backed notes issued by Guodian Power Development Company Limited(hereinafter referred to as "Guodian Power")in 2020 as an example to explore the process,characteristics and effects of green asset securitisation financing,and to expand the depth and breadth of application of green asset securitisation in the power industry.This thesis uses the case study method,literature research method and event study method to investigate the securitisation financing of Guodian Power’s green assets.Firstly,it compares the policy documents on green asset securitization and analyzes the current situation of applying green asset securitization in the power industry based on the industry characteristics.Secondly,the motivation of implementing green asset securitization is studied from Guodian Power’s own financing needs and national policy support,and the process of implementing green asset securitization financing,including key aspects such as transaction structure,selection of underlying assets,and investment of funds raised,is explained,while the characteristics are summarized.Finally,the financing effect is analyzed from four aspects: market effect,financial effect,environmental economic effect and social effect.The main findings of the thesis are: first,in terms of market effect,Guodian Power’s implementation of green asset securitization has obtained positive market response in the short term;second,in terms of financial effect,green asset securitization can reduce the company’s financing cost,lower asset-liability ratio and improve asset liquidity;third,in terms of environmental effect,Guodian Power’s green asset securitization saves standard coal by using clean energy to generate electricity The securitization of Guodian’s green assets can save standard coal by using clean energy to generate electricity and reduce greenhouse gas emissions by more than 3.12 million tons,bringing implicit financial benefits.Fourth,in terms of social effects,this issue further establishes the image of a green company,improves social reputation,and strengthens the company’s awareness of environmental responsibility.At the same time,Guodian Power’s implementation of green asset securitization also suffers from problems such as too much concentration of underlying assets and insufficient product layering design.Finally,suggestions are made to promote the better development of green asset securitization in the power industry.This thesis innovatively focuses on green asset securitization financing,highlighting its "green" attributes.We analyze in detail the motives,process and characteristics of green asset securitization financing,and summarize the financing effect from various perspectives,in order to provide reference for the implementation of green asset securitization financing in the power industry.