The Research On Carbon Bond-Issuance And Future Prospects

Under the United Nations Framework Convention on Climate Change and theKyoto Protocol, the world should bear the responsibility of protecting the naturalenvironment and the global climate as well as developing the economy, and China isno exception, so developing low-carbon economy will be the inevitable choice ofChina. There must be a lot of financial support to develop a low-carbon economy, relysolely on enterprises’ own capital and external financing is obviously unable to meetthe needs of such a large amount of capital.Carbon bond is a kind of bond issued to support low-carbon economicdevelopment, which is an important branch in carbon finance mechanism. By issuingcarbon bond to meet the financial needs of low-carbon economic development hasbeen supported by the governments, enterprises and organizations of many countriesin the world, and the bond theory, designation and practice of carbon bond haveachieved some success. Author makes a detailed research on the situation of theoryand practice of the international carbon bond, and gives a much more detailed conceptof carbon bond. For the specific national conditions of our country, through thefeasibility analysis of issuing carbon bonds in China, this article considers thatgovernment issuing carbon bond is a viable way.Carbon government bond is a special kind of bond, which is a proof ofrepayment issued and guaranteed by the government to support the low carboneconomic development. This thesis gives a specific concept of carbon governmentbond with innovation and made a research on the issuance of carbon governmentbond. Carbon government bond is mainly used for supporting the construction of newenergy enterprises or modification of the old energy-intensive enterprises. The fundthat Carbon government bond raised can provide the necessary financial support tocarbon emission reduction business, to the development of new energy enterprises and to upgrading old equipment.As carbon bond is issued by the government, while carbon emission reductionenterprises use the money, the government is obliged to ensure the interests ofbondholders, once the carbon emission reduction enterprises’ profitability is notstrong enough to pay the principal and interest of the bonds, which would result intremendous pressure on the state’s finance. So it is needed to analyze thecountermeasures of risk of Chinese carbon bond issuance. The moral hazard ofPrincipal-Agent appears because of separation of the ownership and usage of themoney that carbon bond raised, low-carbon enterprise operational risk and the risk oflow-carbon industry are key issues to be considered as well.Finally this article gives the countermeasures of enterprise operational risk andmoral hazard issues of carbon bond, proposes ideas about improving carbon bond andprospect on carbon bond issuance in China.