Analysis Of The Motivation And Effect Of China’s Power Enterprises Issuing Carbon Neutrality Bonds

In recent years,the situation of global warming has become increasingly serious,and countries have formed a consensus on carbon emission reduction in response to this climate change.As a key component to support green development,green finance provides carbon emission reduction projects with green bonds that match the scale and maturity of funding needs,serving as a direct financing channel.However,green bonds still have problems,such as inconsistent definition standards and imperfect information disclosure.Therefore,it is imperative to innovate green financial products in the field of green finance to support climate change.Guided by the "dual carbon" goal,in February 2021,China innovatively launched the world’s first batch of carbon neutrality bonds under the framework of the green bond policy.This policy focuses on the field of low-carbon emission reduction and has become an important financial tool to help achieve the "dual carbon" goal.At this stage,China’s power enterprises are accelerating the pace of green and low-carbon transformation under the requirements of the "dual carbon" goal.In this context,China Three Gorges Group seized the opportunity of carbon neutrality development and issued the first batch of carbon neutral bonds.Based on this,this paper selects Three Gorges Group as the case analysis object,focusing on the reasons for its development and distribution effect.Firstly,the literature research method is used to summarize and review the relevant research results of green bonds and carbon neutrality bonds,and to define and compare them.Based on the theory of optimal financing and corporate social responsibility,the analysis of the causes and effects of follow-up actions is theoretically elaborated.Secondly,based on the introduction of the case background,the basic information of the bond and the issuance process,the case analysis method is used to analyze the internal and external motives of China Three Gorges Group based on its own development needs and the actual environment.The analysis also includes an evaluation of its issuance effect from three aspects: economic,social,and ecological environment.Based on the above analysis,this paper concludes that,first,the requirements and support of national policies provide development opportunities and institutional guarantees for the issuance of carbon neutrality bonds;the need for China Three Gorges to alleviate its financing difficulties,pursue strategic transformation,and plan for carbon emission reduction prompted it to choose to issue carbon neutral bonds for financing.Second,the issuance of carbon neutrality bonds by China Three Gorges Group has produced positive effects on reducing project financing costs,improving the profitability of its main business,driving regional social and economic development,and promoting energy conservation and emission reduction.Third,the issuance of carbon neutrality bonds can provide financing channels for power enterprises and play a supporting role.At the same time,based on the successful practice of China Three Gorges Group in issuing carbon neutrality bonds,this paper summarizes the enlightenment experience of other power enterprises in financing decisions and future issuance of carbon neutrality bonds,so as to promote the improvement and development of the carbon neutrality bond market.