Discussion On The Motivation And Effect Of Longyuan Electric Power Issuing Green Bonds

The global climate change issue is becoming increasingly serious,and the public,government,and investors have all paid attention to this issue.The clean energy industry is developing rapidly.As an environmentally friendly,renewable and clean energy,the exploitation and utilization of wind energy will provide solutions to global energy tensions,climate warming,and other challenges.Wind power has become the third largest power source in China,gradually developing towards the main energy source.However,wind farm development projects have a long development cycle,high investment costs,and it is difficult to obtain long-term low-cost funds.Therefore,if the short-term debt ratio is too high,it will exacerbate the term mismatch problem of funds;With the continuous expansion of the scale of wind power enterprises,the funding gap is also increasing.Therefore,in order to achieve stable development,wind power enterprises must invest large amounts of long-term low-cost funds to meet their development needs.As a sustainable financial tool,green bonds have flexible investment maturities and low issuance costs,bringing more financing opportunities for wind power enterprises.Based on a review of relevant research on green bonds,this article conducts a study on the issuance of green bonds in the wind power industry through a case study of Longyuan Electric Power Company,mainly analyzing the motivations and effects of the company’s issuance of green bonds.Longyuan Power is the earliest specialized company to develop wind power in China,and has continuously maintained its position as the world’s largest wind power operator since 2015.In the long run,driven by the scale effect of wind power installation,the company’s performance remains growing.Longyuan Electric Power is selected as a representative case company.First of all,this article introduces the definitions of green bonds,market effects,financial effects,and environmental effects,as well as the characteristics of green bonds,laying a theoretical foundation for subsequent analysis,and explains the general motivations for issuance and the evaluation indicators used to measure each effect in this article.Secondly,it introduces the industry background,enterprise profile,and basic issuance of green bonds of Longyuan Electric Power,including the scope of issuance and term interest rates.It also analyzes the motivation for Longyuan Electric Power to issue green bonds from aspects such as corporate strategic objectives,financing costs,and green reputation.Subsequently,this article conducts a comprehensive analysis of the financial,market,and environmental effects of the issuance of green bonds by the enterprise.The issuance of green bonds will provide strong financing support for wind power enterprises,thereby promoting their sustainable development.After research,it is concluded that the issuance of green bonds by Longyuan Electric Power not only has significant market,financial,and environmental benefits,but also effectively reduces corporate financing costs and alleviates the issue of project term mismatch.Green bond investment projects can not only help alleviate local employment pressure,but also reduce grid operating costs,improve government tax revenue,and achieve the goal of energy conservation and emission reduction.Therefore,they are of great significance.In order to better promote the development of green bonds,research recommendations are drawn:a unified definition of the meaning of "green";The issuers of green bonds should strengthen information disclosure and give full play to the issuance advantages of green bonds;In order to promote sustainable development,government regulators should strengthen the certification of green bonds and formulate more complete supporting policies to cultivate investors’ awareness of environmental protection and green investment.