Sustainable Finance

Hong Kong aims Carbon Trading Goals

Published on: 28 December 2021 04:25 AM
by KnowESG
Hong Kong looks forward in carbon trading
Hong Kong looks forward in carbon trading

A Brief Summary

Carbon trading will be a tool to mobilize finance for transition to a low carbon economy. The Hong Kong Monetary Authority's(HKMA) steering group has proposed developing a green classification framework for adoption in the local market. The steering group said it was making progress towards mandating climate-related disclosures.

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The steering group looks into how Hong Kong can develop into a regional carbon trading hub, which would include the development of a global high-quality voluntary carbon market, given Hong Kong's "status as a champion of international standards, a facilitator to channel global capital into the Mainland, and an international financial and risk management hub."

In a statement, Ashley Alder, co-chair of the steering group and chief executive officer of the Securities and Futures Commission (SFC), stated, "Carbon trading will be a strategic instrument to mobilize capital for the transition to a low carbon economy."

In addition, as part of the Guangdong-Hong Kong-Macao Greater Bay Area collaboration, the firm will work with authorities concerned on carbon market potential.

The Green and Sustainable Finance Cross-Agency Steering Group, established in May 20202, is co-chaired by the Hong Kong Monetary Authority (HKMA) and the SFC. Members include the Environment Bureau, Financial Services and the Treasury Bureau, Hong Kong Exchanges and Clearing Limited, Insurance Authority and the Mandatory Provident Fund Schemes Authority.

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