为什么是增加cost of debt啊

问题如下：

High carbon intensity of a project most likely leads to lower:

选项：

A.cost of debt.

B.risk of default on debt.

C.fair value of a company’s equity.

解释：

C is correct. A carbon-intensive company/project might be subject to material risks, including financial, regulatory, and legal factors that could affect the company’s/project’s credit risk and lead to higher discount rates for the company’s/ project’s future cash flows and lower fair value of the company/project. The risks brought by developing a high-carbon-intensity project increase the cost of debt for the company/project compared to lower-carbon-intensity companies/projects and consequentially increase the risk of default on debt.