The Path Of Emission Rights Securitization Industry Environmental Governance

Financing difficulties in the country’s environmental governance in the context of the industry booming, long-term problems hinder the development of environmental management industry.Pollutant emissions trading is to achieve administrative licensing control through economic means, to reduce the emissions of a pollutant for the purpose of economic activity. Through financial markets price discovery function, the light emission rights asset finance industry not only solve the difficult problem, but also can effectively promote environmental protection and energy conservation. With the development of asset securitization transaction structure as well as its innovative range of asset base is also expanding. Emission rights can generate stable cash flows through the structural design, environmental control industry through true sale of emission rights, emission rights issue securities to support ways to achieve asset securitization financing in a broad sense.In this paper, the actual practice of environmental management company, visited the sewage companies and Emissions Exchange, combining theory analysis of environmental governance enterprises to carry out the feasibility of emission rights securitization using SWOT analysis. Corporate environmental governance emission rights can be obtained from various projects imputation, regional arrangements to conduct unified design, combined with the standard investment bank proposed to pick out the valuation, the more excellent the period of emission rights. Since the transfer of emission rights can be formed at a future point in time accounts receivable, the area should be similar to the valuation of similar emission rights to form a pool of assets, and handed over to the credit rating agencies. After delivery of the assets to get ratings SPV project company, by the company repeatedly issuing asset-backed securities, and the interest rate is usually higher than the securities interbank offered rate2-3percentage points. This model of risk control measures in addition to the traditional internal and external increase trust, the beneficiary certificate holders by the composition of the General Assembly beneficiary certificate holders the right to pre-arrange. Future emission rights can be considered in the total control of the initial distribution of the formation of the case to get paid by the Environment Exchange sewage storage mechanism by trust companies, securities companies and other special purpose vehicle set up dual emission right way to improve the structure of the securitization transaction.