Exchange group Hong Kong Exchanges and Clearing Limited (HKEX) announced today the launch of Hong Kong International Carbon Market Council (the Council), a collaboration of leading corporates and financial institutions primarily focused on the development of an international carbon market.
The announcement comes as the need for established, mature carbon trading venues grows. Demand for carbon offset projects that counteract the release of greenhouse gases, and related credits, is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions. The market for carbon credits, however, is challenged by problems including a lack of liquidity, and insufficient or inconsistent data to assess the effectiveness of the projects.
The council aims to gather insights from its members to develop and efficient and effective carbon market with best-in-class market infrastructure, products and services.
HKEX Chief Executive Officer, Nicolas Aguzin, said:
“The Hong Kong International Carbon Market Council will play a vital role in supporting our vision to build a leading carbon market, welcoming institutional and corporate participants from China, Asia and around the world. We believe that, over time, more participants sharing the same goal and ambition will join us on this net-zero transition journey, securing the future for the next generation.”
With the launch of the new council, HKEX stated that it aims to “lay the foundation for Hong Kong’s growth as a premier carbon hub in Asia and beyond as well as contribute to global efforts towards achieving a low-carbon economy.”
Inaugural members of the council include the Hong Kong branches of Australia and New Zealand Banking Group, Standard Chartered Bank and BNP Paribas, Bank of China, Cathay Pacific Airways, China Energy Conservation and Environmental Protection Group, China Forestry Group, Industrial and Commercial Bank of China , State Power Investment Corporation, Tencent Holdings and The Hongkong and Shanghai Banking Corporation.