Exploration of Green Assets Securitization In Mid-Deep Geothermal Energy Heating Projects

With the introduction and implementation of policies related to carbon neutrality and carbon emission reduction, the geothermal industry, as a clean energy industry with zero carbon emissions, faces great room for development. With market expansion and increased investment and research efforts, the geothermal development industry is facing strong financing needs. From the perspective of enterprises, geothermal development enterprises that have entered the operation period usually have the characteristics of high asset-liability ratio and stable cash flow, and have strong demand for long-term capital and initial investment capital. However, at the same time, they also are confronted with some problems, such as the limited use of traditional bank credit funds, and the access barriers and long time periods for raising funds in the capital market. Asset securitization, as an innovative domestic business, can raise the level of a company’s main body, enhance the credit of products, and help enterprises achieve lower-cost, long term and flexible capital market financing, through the specific and structured design of continuous and stable basic asset cash flow. Carbon neutrality policies are more helpful to attract all kinds of institutional investment institutions to participate enthusiastically and provide diversified financing channels for enterprises. In order to innovate financing channels, explore geothermal energy green asset securitization, the first domestic geothermal industry charging rights asset securitization business practice has been carried out. Geothermal energy heating project, with its good carbon neutrality, emission reduction and stable cash income, is the important mode of new energy development with scale and benefits implemented by the state. It has achieved success in economic benefits, financial innovation, and social benefits, and scored multi-win results for investors, industry builders, and society.