Research On Investment Value Evaluation Of Carbon Neutral Bonds

At the general debate of the United Nations General Assembly in September 2020,President Xi Jinping announced that my country will achieve carbon peaking by 2030 and carbon neutrality by 2060.This is the "30.60" goal.As the green bond market’s response to the "dual carbon" goal,my country will begin issuing carbon-neutral bonds in2021.It is a sub-category of green bonds and a debt financing tool.As an important financing channel under the "dual carbon" goal,carbon neutral bonds invest 100% of all funds raised after bond issuance in green and low-carbon fields,such as "clean energy fields,clean transportation fields",etc.self-issued Since then,it has quickly become an important boost to promote energy reform,protect the ecological environment,and stabilize economic development.With the increasing scale of carbon-neutral bond issuance,more investors are beginning to pay attention to carbon-neutral bonds,but at this stage,there is no accurate evaluation method to help investors identify carbon-neutral bonds with real investment value.Based on the purpose of assessing the investment value of carbon-neutral bonds,this paper uses the complete issuance data of 120 carbon-neutral bonds issued in my country in the past two years to construct a carbon-neutral bond evaluation model to evaluate carbon-neutral bonds and provide carbon neutral bonds for the general public.Neutral bond investors provide a scientific and accurate basis for judging investment value.It is found that China’s carbon neutrality bonds have two parts of value,namely bond value and option value.First of all,carbon neutrality bonds have the yield to maturity attribute of ordinary bonds,so the income method is used to build an evaluation model to evaluate the value of ordinary bonds of carbon neutrality bonds.Secondly,carbon neutrality bonds have option attributes.The raised amount of carbon neutrality bonds is fully invested in nuclear power,photovoltaic,wind power and other clean energy,clean transportation and other fields.This field is mainly used for the construction of green low-carbon projects in order to reduce the role of carbon dioxide and other greenhouse gases.Therefore,carbon neutrality bonds will produce certain environmental benefits,while the environmental benefits generated by carbon neutrality bonds can be seen as an option,so carbon neutrality bonds have the attribute of options.In this paper,B-S option pricing method is used to build an option partial evaluation model for carbon neutrality bonds.Before using this model,some parameters are optimized,that is,CEA’s national average transaction price of carbon emission rights is used as the price of underlying assets,and GARCH model is established to predict the dynamic volatility of carbon neutrality bonds,making the evaluation results more reasonable.From the assessment results,the higher the overall value of carbon neutrality bonds with high ratings of the issuer in the medium and long term.However,the overall investment value of carbon neutrality bonds is much higher than the partial value of carbon neutrality bonds calculated by the income method,no matter from the perspective of bond type,issuance period and subject rating,which indicates that the investment value of carbon neutrality bonds in China is underestimated,and the environmental benefit value generated by carbon neutrality bonds is ignored..Finally,the following policy recommendations are put forward based on the evaluation conclusions of carbon neutral bond investment value: First,based on the government level,it is proposed to improve the carbon neutral bond information disclosure system,standardize the third-party certification rules of carbon neutral bonds,and cultivate rational investors of carbon neutral bonds;Secondly,based on the issuer level,it is proposed to encourage non-state-owned enterprises to actively participate in the issuance of carbon-neutral bonds and enhance the core competitiveness of the issuing companies;finally,based on the investor level,it is proposed to enhance the awareness of carbon-neutral bond investment and choose companies with higher overall investment value.Carbon neutral bonds.