Scaling up Renewable Energy Assets: Issuing Green Bond via Structured Public-Private Collaboration for Managing Risk in an Emerging Economy
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Institute of Resource, Environment and Sustainable Development, College of Economics, Jinan University, Guangzhou 510632, China
2
Research Centre for Green Energy, Transport and Building, School of Professional Execution & Executive Development, The Hong Kong Polytechnic University, Hong Kong, China
*
Author to whom correspondence should be addressed.
Academic Editors: Idiano D’Adamo and Beata Zofia Filipiak
Energies 2021, 14(11), 3076; https://doi.org/10.3390/en14113076
Received: 23 April 2021
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Revised: 21 May 2021
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Accepted: 22 May 2021
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Published: 25 May 2021
(This article belongs to the Special Issue Sustainable Finance in Energy Sectors)
Green bonds have increasingly been utilized around the world as a source of financing for renewable energy development, designed with compliance requirements and measurable economic returns to investors, while mitigating climate change. However, the efficacy of green bond arranged in the emerging economies for financing renewable energy assets and how the underlying risks are managed have remained to be explored. The paper aims to examine the evolving green financial system sponsored by both public and private institutions in managing such risks within China’s emerging economy. A case study of green financing for a bundle of wind power assets led by a state-owned enterprise (SOE) reveals an alternative approach by structuring public–private collaboration while stipulating market-based financial incentives to institutional stakeholders under a political economy. This institutional consortium is composed of a state development bank, a commercial bank, credit rating agencies, institutional and private investors, regional power purchasers, and carbon trading entities. Financial stakeholders’ risk in such emerging sustainable investment is moderated by these participating institutions and structured “upsides” from carbon trading aligned with the framework of green finance and standards for green bond development. The results reveal the potentials of scaling up the development of renewable energy by adequately managing and sharing key risks, while allocating substantial funding into renewable energy projects under such a green financial system that is to be complementary with a scalable post COVID-19 economic recovery.
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Keywords:
renewable energy; wind power; green bond; China; climate change; public–private collaboration; risk management
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MDPI and ACS Style
Fu, J.; Ng, A.W. Scaling up Renewable Energy Assets: Issuing Green Bond via Structured Public-Private Collaboration for Managing Risk in an Emerging Economy. Energies 2021, 14, 3076. https://doi.org/10.3390/en14113076
AMA Style
Fu J, Ng AW. Scaling up Renewable Energy Assets: Issuing Green Bond via Structured Public-Private Collaboration for Managing Risk in an Emerging Economy. Energies. 2021; 14(11):3076. https://doi.org/10.3390/en14113076
Chicago/Turabian StyleFu, Jingyan, and Artie W. Ng. 2021. "Scaling up Renewable Energy Assets: Issuing Green Bond via Structured Public-Private Collaboration for Managing Risk in an Emerging Economy" Energies 14, no. 11: 3076. https://doi.org/10.3390/en14113076
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