China’s climate goals are an opportunity for Hong Kong to develop as a regional carbon trading hub, says finance official
- Hong Kong regulators will finish a report in December on how to develop the city as a carbon trading hub
- However, several lawmakers doubt the city’s suitability for the role as it has no track record
“International carbon markets are expected to grow significantly as the mainland and other key overseas markets are dedicated to transitioning to a green, low-emission and climate-resilient economy,” Chan told lawmakers on the monthly Financial Affairs Panel on Monday.
“As an international financial centre, Hong Kong plays a strategic role as the mainland’s gateway to connect international investors to inject capital to facilitate the national carbon neutrality goals.”
China launched its national carbon emissions exchange on July 16 in Shanghai – a key project within Beijing’s efforts to achieve its 2060 target. Carbon trading allows companies that exceed their emissions quotas to offset the difference by buying permits from more efficient companies whose emissions are less than their allocations.
“While Shanghai has started a nationwide carbon trading market, Hong Kong has not yet had any carbon trading. How can Hong Kong be involved in the fast-growing carbon trading market in the mainland?” asked lawmaker Ma Fung-kwok during the meeting.