The Research On The Green Financing Issue Of “The Belt And Road” Infrastructure Projects

In 2013,China formally proposed to global countries a cooperation initiative to jointly build “The Belt and Road”(shorted as “B&R”),a huge network of connectivity spanning the entire Eurasian continent and parts of Africa.This historic initiative has made rapid progress and fruitful results since it was put forward in response to the economic development needs of the countries along “B&R”.It has provided a new direction and path for global governance,brought about China’s plan for a win-win world development,and added impetus and platform to the sustainable development of the countries along “B&R”.As the most priority construction direction of “B&R”initiative,infrastructure projects construction has a pivotal position.However,due to geographic characteristics,countries along “B&R” span through the climate or geological changes sensitive zone,ecological environment is complex,diverse,and fragile.This caused environmental impact negative comments regarding the construction of large-scale infrastructure projects in the area.Based on the sustainable development goal of environmental friendliness and resource conservation,the construction of “B&R” has become the expectation and consensus of countries along“B&R”.Therefore,the development of green financing for “B&R” infrastructure projects has become the mainstream trend of “B&R” construction at present.However,after the world economy was impacted by the global financial crisis in 2008,emerging economies were caught in the dilemma of difficult infrastructure financing in their own countries.How can green financing for “B&R” infrastructure projects obtain financing sources from the narrow capital pool? How to effectively reduce the high cost of financing to ensure revenue? How to identify and reasonably share risks among various stakeholders to minimize the possibility of project failure? These are the urgent problems to be solved and are also the focus of the subjects participating in the green financing of “B&R” infrastructure projects in China.To study relative articles regarding “B&R” infrastructure projects green financing provides an important reference in the research on the theory and method,but past research has some limitations,such as the incomplete analysis of “B&R” infrastructure projects green financing development situation,partial recognition to “B&R”infrastructure projects green financing sources,unable to combine the theoretical and empirical practices to comprehensively measure “B&R” infrastructure projects green financing cost,failure to arrange the risk sharing scheme of “B&R” infrastructure projects green financing according to the principle of “benefit sharing and risk sharing”.The above limitations are the key problems to be solved in this paper.Based on the above analysis,the following research contents will be discussed in this paper.Firstly,the background and significance of the topic selection of this paper are expounded,the research literatures at home and abroad are reviewed,the research methods,main content and technical route of this paper are summarized,and the possible innovation and research deficiencies are proposed.Secondly,the relevant concepts of this paper are defined and discussed theoretically.Thirdly,based on the green financing numeric data from 1486 green infrastructure projects distributed over75 countries along the B&R route,the paper describes the characteristics and current situation of green financing,and measures the demand for green financing to give the reason of the existence of gap between green financing demand and supply,which further constructs the frame of the following research.Then,the paper analyzes the sources of “B&R” infrastructure projects green financing,empirically tests the influence of financing sources on “B&R” infrastructure projects green financing and puts forward a cooperation mechanism for the balance of green financing sources.In addition,this paper analyzes the factors that affect the green financing cost “B&R”infrastructure projects,takes the premium of green bonds as an example to carry out an empirical study on the advantages and influencing factors of the green financing cost,and puts forward the management measures of the green financing cost.Furthermore,the risk sharing framework of “B&R” infrastructure projects green financing based on PPP model is constructed,the risk sharing process of green financing is designed,and the risk sharing strategy of green financing is proposed.Finally,the conclusions and suggestions are put forward.Through the research of this paper,the following conclusions are drawn: Firstly,funding support from multilateral development institutions,bilateral development institutions participation and the increase of the private equity ratio in project company have obvious promoting effect and positive externalities to the green financing of“B&R” infrastructure projects,embodied in scale enlargement and leverage of green financing,other related factors including project,institutional and economic all have a certain influence.Secondly,the cost to issue green bonds is lower than ordinary bonds at an average of 0.4 basis points,which releases that the choice of issuing green bonds has certain advantages.After eliminating liquidity premium to the further,it shows that there exists green bond premium in the market which is contributed by the green features of the green bonds,numerical value in the range of 2.2 ～ 2.9 basis points.Green certification for “B&R” green bond has significant negative effects to the premium,and characteristics relating to the bonds and issuers would produce certain effects as well.Thirdly,the goal of sharing green financing risk is to clear the responsibilities of risk sharing subjects,encourage the parties in the project to do a good job of risk management to improve the efficiency of the operation of the project.For beyond the risk factors of participants risk control ability,it is needed to transfer the risk to the insurance company or other players to effectively avoid risks,reasonably determine the risk sharing mechanism between the government and private capital and reduce the total cost of risk probability and management,give full play to the advantages to improve the efficiency of the project products and services.According to the above conclusions,based on the three main levels of Chinese government,China-led multilateral development institutions and Chinese private capital,the following suggestions are put forward: Firstly,uphold the concept of sustainable development and build green “B&R”;Overall plan the policy framework,formulation,and improvement of the legal system;improve the international cooperation mechanism and build an information and data platform.Secondly,complement the traditional multilateral system and explore the competition and cooperation relationship among peers;strengthen the construction of environmental system,choose investment projects carefully;supplement the lack of PPP role and focus on green fund raising.Thirdly,enhance the capacity of private capital and actively promote technical cooperation;expand financing channels for projects and enrich green financial products.