On September 17, Hong Kong Chief Executive John Lee delivered his fourth Policy Address since taking office, entitled “Deepening Reform, Focusing on People’s Livelihood, Leveraging Advantages, and Creating the Future Together.” The report centered on the dual themes of the economy and people’s livelihood, setting out a range of measures.

In the section on “Consolidating Hong Kong’s Position as an International Center,” the report highlighted the development of green and sustainable finance.

The Policy Address noted that the Hong Kong Exchanges and Clearing Limited (HKEX) launched the international carbon trading platform Core Climate in 2022, which remains the world’s only voluntary carbon credit trading platform that settles in both Hong Kong dollars and Renminbi. Looking ahead, Hong Kong will strengthen pilot cooperation with the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) carbon market, test cross-border transaction and settlement pathways, and jointly build a regional carbon market ecosystem. The government will also work with relevant mainland regulatory bodies and institutions to study issues related to China’s participation in the international carbon market, including the establishment of voluntary carbon credit standards and methodologies, as well as systems for registration, trading, and settlement of emission reductions.

At the press conference on September 18 regarding financial and economic measures in the 2025 Policy Address, Christopher Hui, Secretary for Financial Services and the Treasury, remarked: “The FSTB is also exploring further cooperation with Shenzhen and Qianhai to foster digital finance development and support deeper integration of technology and finance between the two cities.”

The emergence of the carbon market provides companies with diversified pathways to reduce emissions. In addition to undertaking internal decarbonization measures, enterprises can purchase carbon credits through the market, channeling capital into climate projects such as afforestation and green technology development.

According to MSCI, the global carbon market is projected to reach US$35 billion by 2030. To achieve this growth target, transparent and efficient trading infrastructure and standardized systems will be essential.

HKEX has long been committed to building a sustainable finance ecosystem, promoting climate financing, and directing market capital toward green projects.

As a carbon market platform, Core Climate draws on the “21 Good Practices” proposed by the International Organization of Securities Commissions (IOSCO), offering one-stop services for the trading, custody, settlement, and retirement of carbon credit products. The platform aims to establish a reliable trading infrastructure for Asia’s voluntary carbon market. It currently has over 100 participants and covers more than 60 internationally certified carbon credit projects.

Meanwhile, HKEX has also been taking steps to fulfill its own climate commitments. In March this year, HKEX announced that all of its operations achieved carbon neutrality in 2024, marking an important milestone in its climate action and reaffirming its commitment to advancing the global net-zero transition.

With the implementation of the measures outlined in the Policy Address, Hong Kong is expected to consolidate its status as an international financial center while gradually emerging as a leading carbon trading hub in Asia.

Author：Qinger