Research On Credit Risk Evaluation And Control Of Green Bonds

With the proposal of green development idea,our policies begin to incline to green industry.The issue scale of green bonds is increasing in our country.However,in terms of credit risk evaluation,most evaluation indexes only consider the ordinary bonds’ influence factors,instead of green risk factors such as the past environmental performance and environmental benefits realized of the issuing subjects.Therefore,this influence the credibility of green credit evaluation result.Based on the above analysis,it is crucial to establish a credit hazard appraisal framework that is appropriate for green bonds.Drawing on the principles of risk management and sustainable development,this article examines the origins of credit risk associated with green bonds,taking into account the current state of the green bond market.To assess credit risk for green bonds in our country,this article proposes a credit risk evaluation system which analyzes the external environmental risk,operation risk of issuing main body,debt item management and green risk.In order to fit the "green" attribute of green bonds,four indicators with green factors were selected,including the green degree of the invested projects,the investment proportion of green projects,the realization of environmental benefits and the past environmental performance,to analyze the green risks of green bonds.The evaluation results show that the performance of the sample bonds in the four dimensions is quite different,with different risk points.Common risks that need to be paid attention to include: first,policy restrictions,insufficient external support and other problems,resulting in external environmental risks;Secondly,issues related to corporate governance,market competitiveness and financial ability are the main sources of operational risks.Third,credit enhancement measures and inadequate information disclosure lead to debt management risks;Fourth,on the dimension of green risk,there are problems such as a low proportion of raised funds invested in green industries and environmental violations.To address the aforementioned issues,enterprises should proactively undertake green transformation,maximize the support of local governments,improve the level of corporate governance,pay attention to improving product competitiveness and financial capacity,increase the transparency of information disclosure,take necessary measures to increase credit,and amplify the proportion of investment in sustainable initiatives utilizing the raised capital.Additionally,they should acquaint themselves with and comply with China’s environmental protection laws and regulations.