Research On The Motivation And Effect Of Issuing Carbon Neutral Debt Financing In The Precious Metal Industry

In recent years,as China’s economy has shifted from high-speed development to high-quality development,the government has begun to pay more attention to environmental issues such as carbon emissions.In 2020,the Chinese government made it clear at the United Nations General Assembly that China’s action goal in global carbon emission reduction is "carbon peak,carbon neutrality".The "double carbon" goal is not only a restriction on enterprises with high energy consumption,high pollution and high emissions,but also brings new opportunities to the development of green finance in China’s financial sector.In order to better serve the green transformation of economy,China launched a new type of green bond-carbon neutrality bond in 2021.The specific application objects and scenarios of carbon neutrality bonds not only meet the requirements of the Catalogue of Green Bond Support Projects,but also focus more on carbon emission reduction benefits.The precious metal industry belongs to the "two highs and one limit" industry,and the governance of its carbon reduction will greatly affect the achievement of the dual carbon goals.This paper selects the first carbon neutrality bond in the precious metal industry issued by Zijin Mining as the research object,and focuses on the analysis of the issuance motivation and effect of the bond "21 Zijin Mining GN001".Firstly,we will conduct research on existing literature and introduce the theoretical basis involved in this article.Secondly,through the statistical description of the carbon neutrality bond market and the comparison with the green bond market,we found the difference between the two markets.Then there is the core case analysis of this article,which mainly includes three points: the first point is to introduce the basic situation of the enterprise itself and the research object "21 Zijin Mining GN001" in this article.The second point is to analyze the reasons for bond issuance from four perspectives:sustainable development theory,priority financing theory,corporate reputation theory,and current hot topic "power rationing".In terms of issuance effects,we mainly approach from the perspectives of stock price effects,environmental effects,financial effects,and reputation effects.Finally,through the above analysis of the case of "21 Zijin Mining GN001",it can be concluded that in terms of issuance motivation,firstly,Zijin Mining,which is listed in the "two high and one remaining" industry,is reducing carbon emissions by independently constructing photovoltaic low-carbon power generation projects under the trend of carbon reduction,thereby meeting the specific requirements of policies for the industry.Second,the Green Credit Guidelines and other policies restricted Zijin Mining’s bank financing channels,and the introduction of carbon neutrality bonds provided a financing channel for Zijin Mining’s green projects.Third,Zijin Mining’s massive acquisition of assets led to insufficient funds,and it needs to issue carbon neutrality bonds to finance green low-carbon projects.Fourthly,the occurrence of the "power outage" event has made enterprises realize the need to establish their own power supply to stabilize the normal operation of production.In the analysis of issuance effects,in terms of stock price effects,bond issuance events can indeed have a significant impact on stock prices,and the impact is positive.In terms of financial effects,the issuance of bonds can indeed bring a certain reduction in financing costs for enterprises.In terms of the environment,with the implementation of green and low-carbon projects,the same power generation compared to thermal power generation can significantly reduce the emissions of carbon dioxide and other pollutants.In terms of reputation effect,the issuance of bonds has attracted varying degrees of attention from enterprises in the media,bond primary market,and stock secondary market,effectively establishing a good social image for the enterprise.Based on the above conclusions,this paper puts forward the following suggestions:First of all,for enterprises that want to upgrade their green transformation but are difficult and expensive to finance in traditional financing channels,they should broaden their financing channels.For example,by taking advantage of policy support,they can successfully obtain financial support for their green transformation by issuing carbon neutrality bonds.Secondly,it is recommended that enterprises optimize their financial structure before issuing bonds,and strive to optimize indicators such as asset liability ratio that may cause concerns about debt repayment risks,in order to obtain capital support at relatively low interest rates during the bond financing process.Finally,relevant departments can help enterprises expand the publicity of carbon neutrality bonds.On the one hand,they can expand the spread of the concept of low-carbon green development,and more people and investors can pay attention to the dynamics and development of the carbon neutrality bond market.On the other hand,it can effectively form a demonstration effect and drive other enterprises in the industry to issue carbon neutrality bonds,which can not only increase the activity of the carbon neutrality bond market,but also bring benefits to the environment because of the construction of green low-carbon projects.