Research On The Impact Of CCER Tradings On Environmental Protection Companies

Since the Industrial Revolution,the quality of human life has been improved.But at the same time,the greenhouse gases produced by the activities not only lead to climate problems,but also affect the development of social economy.China is currently the largest carbon emitter.For green,low-carbon and sustainable development,energy conservation and emission reduction are imminent.In September 2020,the government clearly proposed to achieve carbon peaking and carbon neutrality "dual carbon" goals by 2030 and 2060 respectively.From the pilot carbon trading market to the official establishment of the national carbon trading market,carbon trading market is becoming more and more perfect.At present,the targets of the carbon trading market are mainly carbon emission allowances and Chinese Certified Emission Reduction(CCER)spot.CCER is a supplementary trading target of the carbon emission trading market.For companies developing CCER projects,the sale of CCER can obtain a certain amount of income,which will promote the company to increase investment in carbon emission reduction projects.For emission control companies,they can purchase CCERs that are cheaper than carbon allowances to offset carbon emissions and reduce carbon emission reduction costs.For the government,CCER provides carbon trading targets,helps the government stabilize carbon prices,and is conducive to the comprehensive development of the carbon market.A review of the literature shows that most of the research on CCER by domestic and foreign scholars starts from a macro perspective and discusses the impact of this trading mechanism on the environment and economy.And most of them focus on CCER project development and management,CCER project risk and value assessment,calculation of CCER project carbon emission reduction,but lack of research on CCER trading.From the perspective of the company,this thesis focuses on CCER,an emerging carbon trading target,takes BECE Legend Group CO.Ltd(BELG)as the case study object,research the impact of CCER trading on the company,and deeply analyzes the characteristics and status quo of CCER,hoping to summarize CCER trading experience through CCER trading cases.This thesis uses the event study method,financial index analysis method,Va R model to find that CCER trading will have an impact on BELG from five aspects: business strategy,technological innovation,stock price,finance,and risk.The specific research results are as follows: CCER trading accumulated carbon asset trading experience for BELG and helped the company to gradually complete the transformation of its business strategy.The company began to focus on the development strategy of kitchen organic waste treatment;after the CCER trading,the company’s R&D expenses and R&D rates increased significantly.It shows that the company has increased investment in research and development,and attaches great importance to technology and product innovation;using the event study method,it is found that the abnormal return rate after the CCER trading announcement is greater than zero,and the trading has had a significant positive impact on the company’s stock price;comparing the company’s financial data before and after the CCER trading,it is found that the benefits brought by the trading have improved the company’s operating ability,profitability,development ability and short-term solvency.However,due to the seasonal characteristics of the company’s business,it has little impact on the profitability of the third quarter;CCER trading brings unique policy fluctuation risks,price fluctuation risks and unknown risks as a new trading form to the company.The Va R model calculates that this 7.2 million RMB carbon asset has a 10% possible loss of more than 3,546 RMB in one day,a 5% possible loss of more than 4,633 RMB,and a 1% possible loss of more than 6,672 RMB.After summarizing the advantages,disadvantages and enlightenment of BELG’s CCER trading,according to the research results,this thesis puts forward opinions and suggestions from three perspectives of government departments,financial institutions and environmental protection companies.Government departments need to increase support for the development of CCER projects,improve the construction of the national carbon trading market,and support companies to participate in CCER trading.In addition,efforts should be made to improve the construction of the carbon market system from the aspects of law,regulation,and carbon finance.Commercial banks,securities companies,insurance companies and other financial institutions should develop carbon financial products in their respective fields,promote innovation in the field of carbon finance,and actively participate in carbon financial market tradings.Environmental protection companies should actively participate in carbon asset trading,increase the development of high-quality projects,establish a carbon asset risk early warning mechanism,and use carbon financial products to avoid carbon asset risks.