Analysis On Causes And Effects Of The Three Gorges Corporation’s Carbon Neutral Bonds Issuance

In 2021,under the background of the dual-carbon goal of "carbon neutrality" and "carbon peaking",the power industry shoulders the major mission of low-carbon transformation.Under heavy pressure,the demand for green funds in the power industry continues to increase with the achievement of the goal of carbon neutrality.As an innovative financing tool in the green bond market,the launch of carbon-neutral bonds has received great attention.Since its official issuance in February 2021,China’s carbon-neutral bonds have developed rapidly and rapidly grown in scale.Carbon-neutral bonds are facing unprecedented development opportunities.In this paper,Three Gorges Group,one of the first companies to issue carbon neutral bonds,is selected as the research object.In 2021,it will issue 10 carbon neutral bonds,which are typical in number,scale and variety.Based on the previous research of domestic and foreign scholars,this paper focuses on the analysis of the Three Gorges Corporation issuing carbon neutral bonds of the motivation and effect.In order to explain the specific mechanism of the effect,the paper also expounds the path of the effect of carbon neutral bond issued by the Three Gorges Corporation.By analyzing the motivation of issuing carbon neutral bonds of the Three Gorges Corporation,it is found that the external reasons of issuing carbon neutral bonds are to comply with the opportunities of issuing carbon neutral bonds and the transformation needs of the power industry,while the internal reasons are to ease the financial pressure of carbon emission reduction projects,reduce the financing cost and improve the green reputation.The effect analysis is conducted from four aspects: financial effect,environmental effect,reputation effect and social effect.The results show that: In terms of financial effect,the issuing of carbon-neutral bonds can reduce financing cost and improve short-term debt paying ability,but has little impact on long-term debt paying ability,capital structure and profitability.In terms of environmental effects,the funds raised by carbon neutral bonds issued by the Three Gorges Corporation are used for carbon emission reduction projects,which can effectively reduce carbon emissions and achieve other environmental benefits through saving standard coal and reducing sulfur dioxide.In terms of reputation effect,positive media reports on the issuance of carbon neutral bonds by the Three Gorges Corporation and the recognition of third-party institutions will enhance the green reputation of enterprises.In terms of social effects,the Three Gorges Corporation has successfully issued a number of carbon-neutral bonds,which has broadened investment and financing channels and set a good example for other enterprises.Finally,in order to more intuitively show the comprehensive effect of issuing carbon neutral bonds to the Three Gorges Corporation,this paper uses the analytic hierarchy process and fuzzy comprehensive evaluation method to establish an index system for comprehensive evaluation.The comprehensive effect score of the carbon neutral bonds issued by the Three Gorges Corporation is 74.28 points,which is between good and average.It shows that issuing carbon neutral bonds can indeed bring positive external effects to Three Gorges Group.Based on the above conclusions,this paper puts forward some suggestions from the perspective of enterprises: Firstly,enterprises should grasp the policy dividend in time and pay attention to bond innovation;Secondly,enterprises should combine their own financing needs,choose the right way for financing,balance costs and benefits;Finally,enterprises should pay attention to the role of media publicity and give full play to the reputation effect.The contribution of this paper is to study carbon neutral bonds issued by enterprises from a micro perspective,which is an effective supplement to the research on carbon neutral bonds,a new financing tool.