Research On The Issuance And Impact Of Carbon Neutral Bonds Of Thermal Power Company Huaneng Internationa

In 2020,the Central Economic Work Conference emphasized the need to achieve peak carbon and carbon neutrality,and set the goal of "Double Carbon 3060".The green financial market is an important way to achieve the "3060" target by directing investment funds to green projects in a market-oriented manner.In particular,the issuance of carbon neutral bonds,a green debt financing tool and product,can meet the needs of enterprises to finance their green and low-carbon transformation,as well as realise the environmental benefits associated with carbon emission reduction and enhance their corporate image.The power industry,as the industry with the largest share of carbon emissions,is at a stage where it is in urgent need of a low-carbon transition and is one of the main players in achieving the goal of "carbon neutrality".This thesis selects Huaneng International,a thermal power company that issued the first batch of carbon neutral bonds,as a case study,and focuses on the analysis and assessment of the motivation and effects of its issuance of two carbon neutral bonds.Firstly,the definition of carbon neutral bonds is defined,the current status of relevant research at home and abroad is outlined,and the theoretical basis relevant to the thesis is clarified and sorted out.Secondly,we analyse the current situation of China’s power industry and the basic situation of Huaneng International,and introduce the issuance elements and investment projects of the carbon neutral bonds "21 Huaneng GN001" and "21 Huaneng GN002".Finally,the motivation and effect of the bonds are analysed.In terms of issuance motivation,the main factors are the external environment and internal motivation.The external environment is mainly the booming development of the green financial market and the development strategy of the power industry,while the internal motivations include the need for corporate financing,the green development strategy of the company and the building of a good corporate image.In terms of the issuance effect,the analysis is conducted from three perspectives: economic benefits are mainly reflected in the reduction of enterprises’ financing costs,improvement of enterprises’ debt maturity structure and capital structure,alleviation of the pressure of debt maturity mismatch to a certain extent,and rational use of funds;environmental benefits are not only reflected in the significant carbon emission reduction effect,but also the reduction of emissions of other environmental pollutants and improvement of enterprises’ environmental performance indicators;social benefits include helping to enhance the international competitiveness of China’s power enterprises and promoting the development of green industries,helping to alleviate China’s electricity demand and boosting the green development of the economy,and helping to enhance the company’s ESG rating and strengthen its sense of corporate social responsibility.Based on the above case studies,this thesis draws the following conclusions: Firstly,compared to ordinary bonds,carbon neutral bonds have more advantages in financing costs.Not only can it solve the financing difficulties encountered by thermal power enterprises during the green transformation process,but also it has played a positive role in promoting the application of green energy conservation and environmental protection technology and improving production technology.The second is that as a new type of green financing tool,the issuance of carbon neutral bonds can cover the positive external costs to the environment caused by the construction of green projects by thermal power enterprises,while generating certain pressure on the financing of non green projects of enterprises,prompting enterprises to actively carry out green transformation.Third,due to the large amount of capital investment required for the initial construction of projects funded by carbon neutral bonds,it may increase the operational risks of enterprises.However,in the long run,enterprises issuing bonds will achieve corresponding triple improvements in environmental,economic,and social benefits.On this basis,this thesis puts forward relevant policy recommendations around the perfect development of the carbon neutral market.