Hong Kong exchange to advance carbon market ecosystem

Hong Kong Exchanges and Clearing Limited (HKEX) on Tuesday signed the memorandum of understanding (MoU) with Guangzhou Emissions Exchange (CEEX), Shenzhen Green Exchange (SGE), Macao International Carbon Emission Exchange (MEX).

Under the agreement, the four exchange groups will work closely to explore new opportunities in carbon markets and green finance.

The carbon market enables participants to buy or sell carbon credits to satisfy either mandatory emission limits or voluntary emission reductions.

The collaboration is expected to facilitate the exchange of expertise among these exchanges and market participants, which will aid the development of a robust and vibrant green finance ecosystem across Hong Kong and the Greater Bay Area, the firms said.

“Through this collaboration, we aim to unlock new opportunities in green finance and build a vibrant regional marketplace that empowers corporates with the capital and solutions they need to achieve their net-zero goals. This agreement also aims to enhance the connection between the mandatory and voluntary carbon markets in the Chinese Mainland and internationally,” said HKEX Group chief sustainability officer Paul Chow.

The four exchanges jointly hosted on Tuesday a seminar in Shanghai, focusing on the development of carbon markets in Greater Bay Area.

In August 2024, HKEX included Gold Standard’s Verified Emission Reductions (GS-VERs) on its carbon marketplace Core Climate.

HKEX signed an MoU with China Beijing Green Exchange (CBGEX) in November 2023 to cooperate on ESG initiatives, promoting green and sustainable finance in their respective financial markets.