Research On Risk Evasion Of Carbon Emission Trading In Power Generation Enterprises Based On Hedging

In recent years,the climate problem has become more and more serious.In response to the climate problem,countries around the world have established carbon emission trading markets to promote energy conservation and emission reduction.As a large energy-consuming country,China generates a large amount of carbon emissions every year and is under tremendous pressure to reduce em issions at home and abroad.Against this background,China is actively engaged in the construction of a carbon emissions trading market.At the end of 2017,the national carbon emissions trading system with the power generation industry as a breakthrough w as officially launched.This is an opportunity and a challenge for power generation companies.Effectively identifying and avoiding the risks of carbon emissions trading and ensuring the preservation and appreciation of corporate carbon assets has become a n important issue that power generation companies need to solve urgently.The use of financial instruments for hedging to manage risks has become an important part of many business operations.Therefore,this paper uses the hedge of financial instruments as an entry point to carry out research on the risk avoidance of carbon emission trading of power generation companies.This article first sorts out the relevant literatures about hedging and carbon emissions trading risks by domestic and foreign scholars,introduces the relevant theories of hedging and risk,and explains the hedging effect of hedging.Secondly,it summarizes the development status of China’s carbon emission trading market,and on this basis,it identifies the carbon emission trading risks o f power generation enterprises based on the carbon emission trading of power generation enterprises and the impact on the net profit and loss of carbon emission trading.Including policy risk,technical risk,transaction risk,capital risk and market risk,of which market risk is the main risk.Then,based on the current status of the prevention and control of carbon emission rights trading risks of power generation companies,combined with the necessity and feasibility of hedging of carbon emission rights,it shows that power generation companies should use hedging to avoid the risks of carbon emission rights trading.Then,based on hedging accounting standards and financial instrument accounting standards,etc.,he carried out the design of carbon emission s trading risk avoidance hedging,from hedging objectives,hedging strategies,hedging scheme design,hedging scheme effect Five aspects of analysis and guarantee measures for hedging work are carried out.Finally,combined with the trading status of carbo n emission rights of A Power Generation Company,the application and effect analysis of hedging schemes are carried out.The research in this paper shows that the use of financial instruments for hedging transactions can effectively avoid the risks of carb on emissions trading.The research results of this paper mainly have two points.The first is to identify the risks of carbon emissions trading of power generation companies.The second Based on hedging accounting standards and financial instrument account ing standards,the design of carbon emissions trading risk avoidance hedging was designed.At the same time,case application was carried out.The theory is combined with practice and has certain reference value for companies to avoid carbon emissions trad ing risks.