Page 78 - 2023 White Paper on the Business Environment in China
P. 78
3 White Paper on the Business Environment in China Summary
financial assets. The taxonomy used in different As ESG and sustainable development become
regions includes different qualitative criteria increasingly integrated into daily life, emerging
and quantitative indicators, and the Common industries in the GBA such as new energy,
Ground Taxonomy (CGT) is a notable example green transportation and real estate are set to
that identifies commonalities and differences become major players. Hong Kong, as a leading
between the EU and China's green taxonomies. international financing platform in the GBA, can
CGT currently focuses on substantial contribution effectively help these industries raise funds to
criteria for climate change mitigation, but does not expand their development and introduce related
cover other environmental objectives. products like bonds and carbon options to the
market. Emerging companies can also utilize
International banks in the Mainland are traditional financing methods and new channels
currently using CGT when issuing green loans, and through the GSF.
as more countries and regions adopt CGT as the
basis for their green classification frameworks, the In terms of the carbon market, the China
application of CGT will become more widespread. Emissions Exchange (CCEX) and the HKEX are
If companies in the GBA issue green bonds that exploring opportunities for cooperation. CCEX is
have applied CGT and place them in the Hong considering establishing a carbon market in the
Kong capital market, they can easily explain the GBA, while Hong Kong has launched a voluntary
products to international investors in Hong Kong. carbon market. If these markets complement
each other in the future, it could further stimulate
To connect capital with climate-related products carbon trading in the GBA.
and opportunities in Hong Kong, the Chinese
mainland and beyond, the HKEX has launched
a carbon marketplace called Core Climate. This
platform provides trading, custody and settlement
services for corporates, investors and project
owners across the climate value chain, and helps
to mobilize investment in new climate projects,
technologies and business models.
78
financial assets. The taxonomy used in different As ESG and sustainable development become
regions includes different qualitative criteria increasingly integrated into daily life, emerging
and quantitative indicators, and the Common industries in the GBA such as new energy,
Ground Taxonomy (CGT) is a notable example green transportation and real estate are set to
that identifies commonalities and differences become major players. Hong Kong, as a leading
between the EU and China's green taxonomies. international financing platform in the GBA, can
CGT currently focuses on substantial contribution effectively help these industries raise funds to
criteria for climate change mitigation, but does not expand their development and introduce related
cover other environmental objectives. products like bonds and carbon options to the
market. Emerging companies can also utilize
International banks in the Mainland are traditional financing methods and new channels
currently using CGT when issuing green loans, and through the GSF.
as more countries and regions adopt CGT as the
basis for their green classification frameworks, the In terms of the carbon market, the China
application of CGT will become more widespread. Emissions Exchange (CCEX) and the HKEX are
If companies in the GBA issue green bonds that exploring opportunities for cooperation. CCEX is
have applied CGT and place them in the Hong considering establishing a carbon market in the
Kong capital market, they can easily explain the GBA, while Hong Kong has launched a voluntary
products to international investors in Hong Kong. carbon market. If these markets complement
each other in the future, it could further stimulate
To connect capital with climate-related products carbon trading in the GBA.
and opportunities in Hong Kong, the Chinese
mainland and beyond, the HKEX has launched
a carbon marketplace called Core Climate. This
platform provides trading, custody and settlement
services for corporates, investors and project
owners across the climate value chain, and helps
to mobilize investment in new climate projects,
technologies and business models.
78
