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Green and Sustainable Finance

Topic Introduction

Green and sustainable finance is a new but rapidly expanding area of financial activities. Capitalising on the enormous green finance opportunities presented by the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Belt and Road Initiative, we will continue to provide the necessary infrastructure and catalyst for promoting market development and encouraging more entities to make use of Hong Kong’s capital markets as well as financial and professional services for green and sustainable investment, financing and certification, echoing the goal of achieving carbon neutrality before 2050 as announced in the Chief Executive’s 2020 Policy Address.

Our Ongoing Work

Government Green Bonds – The Government Green Bond Programme (GGBP) was launched in 2018 with a borrowing ceiling of HK$100 billion. A total of US$3.5 billion of green bonds, targeting global institutional investors, has been successfully issued under the GGBP so far and was well received by the global investment community, affirming investors’ confidence in Hong Kong’s credit strengths and economic fundamentals in the long term. As announced in the 2021-22 Budget, the Government plans to issue green bonds regularly and expand the scale of the GGBP by doubling its borrowing ceiling to HK$200 billion to allow for further issuance of green bonds totalling HK$175.5 billion within the next five years, having regard to the market situation. Retail green bonds will also be issued for the participation of the general public.

Grant schemes – To attract more green bond issuance and promote market development in Hong Kong, the Green Bond Grant Scheme was launched in June 2018 to subsidise eligible green bond issuers in obtaining certification under the Green Finance Certification Scheme administered by the Hong Kong Quality Assurance Agency. Upon the expiry of the existing scheme, a new Green and Sustainable Finance Grant Scheme will be launched to provide subsidy for eligible bond issuers and loan borrowers to cover their expenses on bond issuance and external review services.

Cross-agency collaboration – The Green and Sustainable Finance Cross-Agency Steering Group was established in May 2020 and a strategic plan was promulgated in December 2020, setting out six key focus areas and five near-term action points for strengthening Hong Kong’s financial ecosystem to support a greener and more sustainable future. We will join hands with the financial sector and relevant stakeholders to take forward the strategic plan and continue to mobilise capital towards sustainable projects in the region.

For More Information

For more information, please visit the following websites/linked documents:

Government Green Bond Programme

Green and Sustainable Banking, HKMA

Green and sustainable finance, SFC