HKEX Unveils Carbon Market Plans

HKEX Unveils Carbon Market Plans

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the launch of the Hong Kong International Carbon Market Council (the Council). HKEX is partnering with a number of leading corporates and financial institutions as inaugural Council members to explore carbon opportunities in the region.

The principal focus of this collaboration is to develop an international carbon market that leverages Hong Kong’s position as a leading global financial centre, contributing to the realisation of carbon neutrality goals and the development of the green and sustainable finance ecosystem in Hong Kong, Mainland China and beyond. The Council will gather insights from members on the development of an efficient and effective Hong Kong–based international carbon market with best-in-class market infrastructure, products and services.The launch of the Council will lay the foundation for Hong Kong’s growth as a premier carbon hub in Asia and beyond as well as contribute to global efforts towards achieving a low-carbon economy.

HKEX Chief Executive Officer, Nicolas Aguzin, said: “At HKEX we have an unwavering commitment to the success and prosperity of our community as a whole. This focus on sustainability, as a regulator, market operator and corporate, uniquely places us to be a leader in sustainable finance. I am very pleased today to announce this important collaboration with distinguished and influential Hong Kong, Mainland China and international organisations – together we are committed to advancing the growth of sustainable finance ecosystem in the region and beyond. This is a significant step forward in our collective journey to achieving net zero.”

The inaugural members of the Council comprise Hong Kong, Mainland China and international corporates and financial institutions. They include: Australia and New Zealand Banking Group Limited Hong Kong Branch, Bank of China (Hong Kong) Limited, BNP Paribas Hong Kong Branch, Cathay Pacific Airways Limited, China Energy Conservation and Environmental Protection Group, China Forestry Group Corporation, Industrial and Commercial Bank of China (Asia) Limited, Standard Chartered Bank (Hong Kong) Limited, State Power Investment Corporation Limited, Tencent Holdings Limited and The Hongkong and Shanghai Banking Corporation Limited.

“The Hong Kong International Carbon Market Council will play a vital role in supporting our vision to build a leading carbon market, welcoming institutional and corporate participants from China, Asia and around the world. We believe that, over time, more participants sharing the same goal and ambition will join us on this net-zero transition journey, securing the future for the next generation,” said Mr Aguzin.

More details on the planned carbon market will be available in due course.

The announcement is the latest in HKEX’s recent carbon-related initiatives. In March, HKEX signed an agreement with Guangzhou-based China Emissions Exchange (CEEX) to explore cooperation in tackling climate change and promoting sustainability through carbon finance. Last November, HKEX joined the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Financial Service Providers Alliance (NZFSPA), part of its ongoing commitment to the long-term sustainable development of global financial markets.

Source: HKEX

Related articles

  1. They will explore building a digital carbon exchange.

  2. More than 20 Core Climate participants have traded 400,000 tonnes of carbon credits in the first month.

  3. Carbon markets have so far fallen short of their objectives.

  4. Core Climate will provide trading of voluntary carbon credits.

  5. Voluntary carbon markets are one of the fastest growing markets in recent years.