On September 23, Hong Kong Exchanges and Clearing Limited (HKEX) announced the signing of a Memorandum of Understanding (MoU) with Guangzhou Emissions Exchange, Shenzhen Emissions Exchange, and Macau International Carbon Exchange. The four parties will jointly promote the development of a carbon market and a green finance ecosystem in the Guangdong–Hong Kong–Macau Greater Bay Area (GBA). This marks the first quadrilateral cooperation agreement among carbon trading institutions in the GBA, carrying significant symbolic meaning.

According to the MoU, the four exchanges will explore opportunities for cooperation in carbon markets and green finance, facilitate experience sharing and knowledge exchange, and enhance institutional and professional capabilities in carbon market operations and green finance. The initiative aims to deepen the development of the regional carbon market.

The establishment of carbon markets has created diversified emission reduction pathways for enterprises. According to MSCI, the global carbon market is projected to reach a scale of USD 35 billion by 2030.

HKEX’s international carbon trading platform, Core Climate, is the world’s only voluntary carbon credit trading platform settled in both Hong Kong dollars and renminbi. It draws reference from the 21 Good Practices set out by the International Organization of Securities Commissions (IOSCO). The platform currently has over 100 participants, covering more than 60 internationally certified carbon credit projects.

Shenzhen Emissions Exchange has grown over more than a decade into a comprehensive trading institution that integrates exchange functions, think tank roles, and capacity-building, making it one of the most influential brands in the green and low-carbon sector.

Guangzhou Emissions Exchange is the only institution in the GBA that simultaneously serves as a national carbon trading pilot and a pilot zone for green finance reform and innovation.

Macau International Carbon Exchange leverages Macau’s role as a bridge linking China with Portuguese-speaking and Belt and Road countries in climate finance. It empowers companies, investors, and project owners in the global value chain to better understand and participate in environmental finance markets, offering services such as selection, trading, custody, settlement, and offsetting of carbon credits and green energy products aligned with sustainability performance.

Grace Hui, HKEX Group Head of Sustainability, stated:

“Together, we will explore new opportunities in green finance, build a vibrant regional carbon market, and provide funding and solutions to help enterprises achieve net-zero emissions. This cooperation will also foster greater connectivity between Mainland China’s mandatory carbon markets and international voluntary carbon markets.”

Christopher Hui, Secretary for Financial Services and the Treasury, commented:

“We have always placed great emphasis on promoting carbon market cooperation within the GBA. This MoU is the first quadrilateral agreement among carbon exchanges in the region and represents a milestone toward orderly, healthy, and interconnected carbon market development. The Chief Executive’s 2025 Policy Address highlighted plans to strengthen pilot cooperation with GBA carbon markets and co-build a regional carbon market ecosystem. The signing of this MoU underscores both the government’s and HKEX’s determination to actively foster cooperation and joint development with Mainland carbon markets through various channels, reinforcing Hong Kong’s position as the leading sustainable finance hub in the region.”

As part of the cooperation launch, on the same day as the signing, the four exchanges also co-hosted a seminar at the China Carbon Market Conference in Shanghai. The session focused on driving innovative development of the GBA carbon market. The collaboration is expected to achieve breakthroughs in cross-border settlement, mutual recognition of project standards, and carbon finance product innovation, offering a regional demonstration for China’s dual carbon goals of peaking emissions and achieving carbon neutrality.

Author：Qinger