The central bank supports environmental protection projects, green enterprises have a new way of "money"

Global Coatings Network News:

This year, as the capital market is sluggish and the secondary market is weak, the financing pressure of chemical companies has increased a lot.

According to Yang Ping, due to the high risks of many new energy projects, the U.
S.
Department of Energy found after investigations that if loans are directly provided to these projects, the market predicts that the loan default rate will be as high as 10%.
To this end, the U.
S.
government decided to invest in the promotion of clean energy guarantee projects, and specially approved a sum of funds to be used for the possible default losses of these loans.
This move gave social capital a strong confidence, leveraged a large amount of credit funds to invest in the clean energy industry, and successfully helped the rapid development of nuclear energy, wind energy, photovoltaics and other industries.
After the clean energy projects that received loans were completed, it was found that the actual loan default rate was only 2.
2%, which was far lower than the expected 10%.

In addition, compared with foreign chemical companies, my country's petrochemical companies have unique advantages in using the green financial system to achieve their own development.
Yang Ping told reporters that due to different perceptions of fossil energy, developed countries define the petrochemical industry as an "unenvironmentally friendly industry", while China has given petrochemical companies considerable accommodation.
Yang Ping said that coal and oil account for a large proportion of China's energy structure, and it is not realistic to significantly reduce consumption in the short term.
Therefore, the clean or efficient use of fossil energy is still covered by the scope of green finance support.

Financial instruments can solve the urgent need

At present, the green financial tools available to petrochemical companies mainly include green bonds, green funds, and green insurance.
Due to the large loan amount of petrochemical enterprises and the long project period, it is difficult to meet the development needs of normal bank loans.
And through the flexible use of the above-mentioned financial tools, not only can the capital demand be guaranteed, but it can also help companies reduce financing costs.

The reporter learned that because most energy conservation and environmental protection projects have large initial capital investment, long payback periods and low yields, it was difficult to obtain medium and long-term funds in the past, and bank loans were difficult to meet project needs.
Under this circumstance, green bonds have become an important financing channel for companies to develop medium and long-term green projects.

According to a statistical report released by the Central University of Finance and Economics a few days ago, green bonds have been favored by the capital market.
The analysis of the report pointed out that labelled green bonds have obvious advantages in terms of financing costs.

Green insurance is different, and its main purpose is to solve the worries of enterprises.
The most important green insurance product in my country is environmental pollution liability insurance, which has now been upgraded to compulsory insurance.
Yang Ping told reporters that environmental pollution accidents are characterized by a wide range of affected areas, a large number of victims, and a large amount of compensation, which polluting companies generally cannot afford.
Through green insurance, companies can lock their future risks within the corresponding premium range, greatly reduce their production and operation risks, and are conducive to the smooth operation of the company.