Energy Saving and Emission Reduction Contains Huge Investment and Financing Opportunities

Han Xiaoping, deputy secretary-general of the Financial Committee of China Enterprise Investment Association and chief information officer of China Energy Network, recently said: “Global capital markets are optimistic about energy-saving emission reduction innovation companies. At present, China also has a large number of outstanding energy-saving emission reduction innovation companies need capital participation.” According to incomplete statistics, during the “Eleventh Five-Year Plan” period, nearly 600 billion yuan of investment will be invested in energy-saving emission reductions, which means that there are huge investment and financing opportunities in the energy-saving and emission-reduction areas.

2007 is a crucial year for the sustainable development of energy conservation and emission reduction in China. In the “Eleventh Five-Year Plan”, the target for energy conservation and emission reduction is to reduce the energy consumption per unit of GDP by about 20% and the total amount of major pollutants by 10% during 2010. Really need financial capital support. According to data from the U.S. Energy Foundation, China's total energy investment will reach 18 trillion yuan from 2005 to 2020, of which renewable energy and energy-saving, environmental protection investment will reach 7 trillion yuan.

A large amount of research and statistics show that: China has a large number of economic benefits and environmental benefits of energy-saving projects are widely found in all walks of life, so China has the largest energy investment opportunities. Finance and investment should support energy-saving and emission reduction businesses. Energy-saving and emission-reducing industries, which are driven by national policy needs and social needs, require the input of financial capital and private capital in addition to the limited support of local economies and the promotion of the company’s own capital.

The key for the financial and investment industry to enter the energy-saving market is to creatively pass loans, funds, guarantees, factoring, leases, equity investments, venture capital, trusts, independent project companies, and purchase contracts in accordance with the characteristics of energy-saving projects and the actual situation in China. Various investment and financing channels and models, such as the stock market, provide energy-saving project investment and financing services for energy-consuming enterprises and energy-saving service companies.

With regard to the investment and financing channels in China's energy-saving and emission-reduction markets, Wang Shaohong, deputy director of the China Resources Comprehensive Utilization Association's Energy Resources Utilization Professional Committee, believes that there are mainly three ways. One is the direct loans of banking financial institutions, including direct financing loans for high-polluting and high-energy-consuming enterprises, direct financing loans for energy-saving service companies, and bank-enterprise and silver-lending credits; and the second is non-banking financial institution investment, including general requirements for investment. 10 times return, suitable for venture capital of entrepreneurial and growth companies, private equity investment suitable for companies in development period, equity of trust and investment companies suitable for short-term and soon-to-be-listed companies, and bridge capital, suitable for project system Financial leasing with independent, clear property rights, high returns, and high credit projects, six types of asset management companies, such as financing factoring and project acquisition, and fund investment with high credit and security requirements; the third is within the company. Source financing.

In response to the risk of investment in and financing of energy conservation and emission reduction, the National Development and Reform Commission, the World Bank, and the GEF China Energy Conservation Promotion Project Office, the Executive Director of the Comprehensive Utilization of Energy Resources of the China Resources Comprehensive Utilization Association, Wang Shumao, researcher believes: “As long as we rely on energy conservation experts to conscientiously do project technology, Economic feasibility assessment, relying on financial experts or financial institutions to do a good job of project and corporate financial risk assessment, according to the characteristics of energy-saving projects and the specific situation of enterprises, energy-saving service companies, flexible use of various investment and financing methods to do risk assessment and risk With the control, the risk of investing in energy-saving and emission reduction projects can be controlled within an appropriate range."

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