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Hong Kong Carbon Market Opportunities

Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group released a detailed Carbon Market Opportunities Report in March of 2022.

The report cites Hong Kong’s key success factor in adding value to global carbon markets lies in the city’s close links with the Mainland, which enables Hong Kong to facilitate global capital flows into the Mainland’s carbon markets. In addition, Hong Kong’s internationally reputable green certification services and familiarity with both Mainland and international standards will enable the city to serve as a bridge to the world for China which in turn, will enhance the quality of its carbon markets.

Moving forward, the committee’s “Carbon Market Workstream” plans to proceed with the following steps to help develop Hong Kong into a regional carbon trading center. 

  1.  Develop Hong Kong into a global, high quality voluntary carbon market (VCM), leveraging Hong Kong’s status as a champion of international standards, a facilitator to channel global capital into the Mainland, and an international financial center with a stable and mature regulatory system.
  2. Collaborate with relevant authorities and stakeholders to work towards establishing the Greater Bay Area (GBA) Unified Carbon Market in line with Mainland policies to strengthen GBA cooperation.
  3. Explore opportunities to link up international investors with the GBA Unified Carbon Market and potentially the national emissions trading system (ETS).
  4. Strengthen cooperation with the Guangzhou Futures Exchange on carbon market development to enable Hong Kong to act as the Mainland’s offshore risk management center.

To learn more about green finance opportunities in Hong Kong for U.S. firms, please contact Joanna Lam at Joanna.lam@trade.gov.

06/23/2022