Page 56 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
the carbon market. To that end, the SFC is working including carbon avoidance, reduction and
with the Cross-Agency Steering Group's Carbon removal projects to help them transition to a low-
Market Work Stream to establish a regulatory carbon future12.
framework for the carbon market.
Thanks to its leading position as an
In 2022, the Steering Group published a international financial center and close ties to
Carbon Market Opportunities for Hong Kong the mainland, the carbon market in Hong Kong
Preliminary Feasibility Assessment11, which outlines has the potential to serve as a facilitator and
a plan for Hong Kong to become a global, high- connect the mainland with the rest of the world by
quality voluntary carbon market while fostering channelling more global capital to the mainland
cooperation within the GBA and with the and the GBA through carbon credit projects.
mainland. The feasibility study identified four key This creates numerous opportunities in the fight
directions for the Carbon Market Work Stream: against climate change.
• Develop Hong Kong into a global, high- Supporting social entrepreneur-
quality voluntary carbon market. ship and impact investing
• Collaborate with relevant authorities and While the focus on environmental issues has
stakeholders to work towards establishing the GBA gained widespread support in various sectors,
Unified Carbon Market in line with mainland policies. the social component of ESG is still in its infancy.
As ESG becomes increasingly important, social
• Explore opportunities to link international entrepreneurship incubation and impact investing
investors with the GBA Unified Carbon Market and have become key areas of focus in the GBA. Social
potentially the national emissions trading system (ETS) entrepreneurship aims to incorporate social issues
into business models to solve social problems,
• Strengthen cooperation with the Guangzhou rather than just providing charity and funding.
Futures Exchange on carbon market development to Impact investing is an investment strategy that
enable Hong Kong to act as the mainland's offshore aims to generate financial returns while also
risk management centre. addressing social and environmental issues. In
Hong Kong, we are seeing an increasing number
On 28 October 2022, the HKEX launched Core of social enterprises and impact enterprises
Climate, a new international carbon marketplace that aligned their business with sustainable
that will provide transparent and effective trading development goals and impact investing is
of voluntary carbon credits and instruments across becoming a way for these companies to secure
Asia and beyond. This marks a major milestone for funding for their business development.
carbon market development in Hong Kong. The
platform connects corporates and investors with Given these trends, companies in the GBA are
the tools and resources they need to decarbonize encouraged to seize opportunities and minimize
their operations. With its one-stop solution, relevant ESG or climate risks by prioritizing
sourcing, trading, settlement and retirement of enhancement of their ESG and climate change
all types of well-governed and internationally management. In particular, companies in the GBA
certified carbon credits projects can be facilitated should focus on the industries mentioned below.
on the platform, connecting the East and the West
in the quest for low-carbon solutions. Market 12 HKEX, https://www.hkex.com.hk/Join-Our-Mar-
participants, particularly corporates in the GBA, ket/Sustainable-Finance/Core-Climate?sc_lang=en
can purchase carbon credits from internationally
certified carbon projects from around the world,
11 Green and Sustainable Finance Cross-Agency
Steering Group Carbon Market Workstream, https://
www.sfc.hk/-/media/EN/files/CEOO/CASGWS3Prelimi-
naryCarbonFeasibilityAssessmentEnglish3032022.pdf
56
the carbon market. To that end, the SFC is working including carbon avoidance, reduction and
with the Cross-Agency Steering Group's Carbon removal projects to help them transition to a low-
Market Work Stream to establish a regulatory carbon future12.
framework for the carbon market.
Thanks to its leading position as an
In 2022, the Steering Group published a international financial center and close ties to
Carbon Market Opportunities for Hong Kong the mainland, the carbon market in Hong Kong
Preliminary Feasibility Assessment11, which outlines has the potential to serve as a facilitator and
a plan for Hong Kong to become a global, high- connect the mainland with the rest of the world by
quality voluntary carbon market while fostering channelling more global capital to the mainland
cooperation within the GBA and with the and the GBA through carbon credit projects.
mainland. The feasibility study identified four key This creates numerous opportunities in the fight
directions for the Carbon Market Work Stream: against climate change.
• Develop Hong Kong into a global, high- Supporting social entrepreneur-
quality voluntary carbon market. ship and impact investing
• Collaborate with relevant authorities and While the focus on environmental issues has
stakeholders to work towards establishing the GBA gained widespread support in various sectors,
Unified Carbon Market in line with mainland policies. the social component of ESG is still in its infancy.
As ESG becomes increasingly important, social
• Explore opportunities to link international entrepreneurship incubation and impact investing
investors with the GBA Unified Carbon Market and have become key areas of focus in the GBA. Social
potentially the national emissions trading system (ETS) entrepreneurship aims to incorporate social issues
into business models to solve social problems,
• Strengthen cooperation with the Guangzhou rather than just providing charity and funding.
Futures Exchange on carbon market development to Impact investing is an investment strategy that
enable Hong Kong to act as the mainland's offshore aims to generate financial returns while also
risk management centre. addressing social and environmental issues. In
Hong Kong, we are seeing an increasing number
On 28 October 2022, the HKEX launched Core of social enterprises and impact enterprises
Climate, a new international carbon marketplace that aligned their business with sustainable
that will provide transparent and effective trading development goals and impact investing is
of voluntary carbon credits and instruments across becoming a way for these companies to secure
Asia and beyond. This marks a major milestone for funding for their business development.
carbon market development in Hong Kong. The
platform connects corporates and investors with Given these trends, companies in the GBA are
the tools and resources they need to decarbonize encouraged to seize opportunities and minimize
their operations. With its one-stop solution, relevant ESG or climate risks by prioritizing
sourcing, trading, settlement and retirement of enhancement of their ESG and climate change
all types of well-governed and internationally management. In particular, companies in the GBA
certified carbon credits projects can be facilitated should focus on the industries mentioned below.
on the platform, connecting the East and the West
in the quest for low-carbon solutions. Market 12 HKEX, https://www.hkex.com.hk/Join-Our-Mar-
participants, particularly corporates in the GBA, ket/Sustainable-Finance/Core-Climate?sc_lang=en
can purchase carbon credits from internationally
certified carbon projects from around the world,
11 Green and Sustainable Finance Cross-Agency
Steering Group Carbon Market Workstream, https://
www.sfc.hk/-/media/EN/files/CEOO/CASGWS3Prelimi-
naryCarbonFeasibilityAssessmentEnglish3032022.pdf
56
