Research On The Early Warning Of Carbon Financial Risk Of Enterprises Based On Product Life Cycle

An increasing number of enterprises tend to reform their strategy and lead the way of low –carbon development since carbon trading market has been built in China.Risks in low carbon economy will definitely emerge due to the increasing proportion of investment in low-carbon economy and the uncertainty of its yield.The financial risk assessment and early-warning index from the perspective of traditional low-carbon economy will not meet the requirement of carbon management activities in order to achieve carbon emission reduction in the whole low-carbon production link.Different from the traditional financial risk,the risk considered carbon uncertainty.Through testing carbon financial risk,enterprises can test their low carbon production level,and realize the operation cost,asset structure,development strategy and other aspects of adjustment,to further enhance their ability of resisting risks.The warning of traditional financial risk only for financing,investment and operation of enterprises.The new construction of evaluation index system using enterprise profitability,operating capacity,solvency and development capacity.It is not clearly enough for find the risk brought by the enterprise low carbon production.In order to foresee,prevent and control the risk,enterprises under this situation need to re-examine the financial risk early-warning index system of traditional enterprise and design a carbon financial risk early warning index system meeting the of need of low carbon transformation,as well as establish a reasonable and effective early warning model.Since the process of carbon emission is throughout the entire production process of the enterprises,the result might be one-sided if every process is analyzed separately.Thus it studied the whole period of the carbon emissions activity longitudinally from the perspective of the lifecycle of product and,forecasted the risk of each the stage which may occur,as well as found a representative risk assessment index each stage,and finally set up the whole set of carbon financial risk evaluation index system and the constructed the carbon financial risk early warning model.According to the " National Carbon Development of People's Republic of China National Economy and Social DevelopmentThirteenth Five Year Plan" and "The Reform of Ecological Civilization Construction Overall Plan",the power industry will be a breakthrough to start carbon trading system emissions in China.Based on this background,this paper chose the power industry as the research industry,and selected several representative enterprises as the research objects.The aspects of innovation are listed as follows.Firstly,the risk of carbon finance for enterprise are briefly defined and discussed.Secondly,the risk of carbon finance is analyzed from the perspective of the lifecycle of product,and identified and analyzed risks as well as selected risk evaluation index from the four stage of the product lifecycle.Finally,the enterprise financial risk evaluation index is constructed different from the traditional one with low carbon economy perspective,and tried to establish a new carbon financial risk evaluation index system,as well as increased the carbon financial index and then established the early warning model based on it.