CREDIT RATING &

CAPITAL COST

CREDIT RATING:

The more a company is exposed to carbon price, the more likely their credit rating could be in jeopardy. For instance, Drax Power, which operates a coal-fired power plant in the UK, was downgraded to below investment grade, thus increasing borrowing costs and discouraging investment from institutional funds.

CAPITAL COST:

Induced by the regulation of carbon emission targets, the cost of capital for projects that are not carbon-reducing may increase in line with expectations for a carbon price.

-Green Rhino Energy
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