Case Study Of Hubei Energy Group Issuing Carbon Neutral Debt Financing

With the significant consumption of fossil fuels globally and the sharp increase in greenhouse gas emissions such as carbon dioxide,environmental issues are becoming increasingly serious,and green sustainable development has become a focus of attention worldwide.To achieve this goal,the People’s Bank of China proposed to accelerate the improvement of the green finance system,enrich green debt Financing tools and products,and increase financial market support for green carbon emission reduction.As a major carbon emitter in China,the power energy industry urgently needs to undergo a green and low-carbon transformation of its energy structure under the dual carbon target.The construction of green projects requires a large amount of financial support,and the current power and energy industry is generally facing problems such as long project cycles and high financing costs.It is urgent to find new financing methods.As a new green debt Financing financing tool launched by China in2021,carbon neutrality bonds have multiple advantages such as long term,low cost and precise support for green and low-carbon industries,providing a new idea for power and energy enterprises to solve the funding problem of green projects and promote the transformation of energy structure.In this context,this paper uses the method of case analysis to select the first carbon neutrality bond "22 Jaws Energy MTN002(carbon neutrality bond)" issued by Hubei Energy Group,a listed company with the most complete variety of energy in China,as the research object,to analyze the whole process of its carbon neutrality bond issuance,in order to provide reference for other power energy enterprises to carry out similar financing,help them expand financing channels,and accelerate green low-carbon transformation.This paper first defines the relevant concepts of carbon neutrality debt,and expounds the pecking order financing theory,sustainable development theory and corporate social responsibility theory involved in the paper.Secondly,it introduces the overview of bond issuers,basic information of bonds,investment direction of raised funds and carbon neutrality bond compliance certification.Thirdly,it analyzes the reasons for the issuance of carbon neutrality bonds from both internal and external aspects,and then analyzes the advantages and potential risks of its issuance,and analyzes its issuance effects from three perspectives of economy,environment and society.Through analysis,it is found that the issuance of carbon neutrality bonds can not only help enterprises expand financing channels at low cost,improve their debt structure,improve their solvency and profitability,but also reduce emissions of atmospheric pollutants such as carbon dioxide through the use of clean energy power generation,bring good environmental effects,help companies build a green image,improve social reputation,and play a leading role in the industry.Finally,according to the successful experience of this financing,the case enlightenment is summed up,that is,enterprises should seize the policy dividend,actively develop low-carbon projects,actively use carbon neutrality bonds to broaden financing channels,accelerate green low-carbon transformation,while paying attention to project information disclosure,improving the green reputation of enterprises,and focusing on cultivating investors’ green investment awareness,to promote the further expansion and development of the carbon neutrality bond market.