Asset Securitization And Risk Prevention Of Carbon Sink Loans In Industrial Bank Of China

As a major carbon emitter,China faces great challenges in achieving the "Dual Carbon" goal,and at the same time provides opportunities for the carbon market.In the context that China’s carbon financial market is still in its infancy,commercial banks,as the main participants in the Carbon Trading Market,play an important role in promoting the development of the Carbon Financial Market.In the process of carbon trading,commercial banks play a dual role,not only as traders of carbon assets,directly participating in carbon financial transactions,but also providing intermediate services for the Carbon Financial Market.Carbon Sink Loan business is a new channel for commercial banks to provide financing for enterprises,but the lack of liquidity of carbon sink assets increases the risk of commercial banks.Revitalizing carbon sink assets will not only help reduce the capital risk of commercial banks and strengthen asset liquidity,but also help provide stable capital flow for carbon sink pledge enterprises.The "Carbon Sink Pledge + Forward Repurchase Contract" model launched by IB’s carbon remittance loan project is an innovative financing model proposed to solve the financing of forest enterprises.Taking IB’s carbon sink loan project as the research object,this paper first collects and organizes the relevant theories.On this basis,the literature research method and case analysis method were used to sort out the cases of carbon sink loan financing projects of IB,analyze the participants and types of carbon sink projects of financing projects,and explore the possibility of carbon sink loan asset securitization.Put forward the design ideas of asset securitization,and put forward preventive measures for possible risks in the process of asset securitization.Through the analysis of the Carbon Sink Loan cases of IB,it is found that the pledged carbon sink assets have the problem of poor liquidity,but the pledged carbon sink projects have sustainability and stable cash flow in the future,and there is a possibility of asset securitization.In the process of asset securitization design of carbon sink loans,there are three main risks,one is the risk of corporate default,the other is the risk of carbon sink price fluctuations,and the third is the risk of high risk concentration.In view of the above three risks,this paper proposes a scientific monitoring mechanism,a market risk early warning and risk compensation mechanism,and preventive measures to reduce risk concentration.Through the case study,it is concluded that IB’s innovative financing model of carbon sink loan has a leading and demonstration effect on the industry,which is conducive to the industry to propose more financial innovation models,and the design of carbon sink loan asset securitization is conducive to releasing the liquidity of Carbon Sink Assets.