Market plan

HK Exchange signs HSBC, Tencent to Carbon Market Plan

The Hong Kong stock exchange has hired a host of banks, including HSBC and Chinese tech giant Tencent, to help it develop a global carbon market.

Hong Kong Exchanges and Clearing Ltd (HKEX) said in a statement that it was in the process of setting up the Hong Kong International Carbon Market Council, but did not reveal a market launch date.

Six international and Chinese lenders – HSBC, Standard Chartered, BNP Paribas, ANZ, Industrial and Commercial Bank of China and Bank of China – are among the first members, HKEX said.

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Hong Kong’s Cathay Pacific Airways and Chinese tech giant Tencent are also members of the board, which HKEX CEO Nicolas Aguzin said would “play a vital role in supporting our vision to build a world-class carbon market.” plan”.

“This is a significant step forward in our collective journey towards achieving net zero,” Aguzin added.

Global efforts to combat climate change have spawned voluntary carbon markets, which allow emitters to offset their carbon by purchasing so-called credits, which are issued by projects aimed at eliminating or reducing emissions.

In May 2021, Singapore said it aims to roll out a global market and trade quality carbon credits this year. Called Climate Impact X, it was a joint venture between Singapore Exchange, DBS Bank and Temasek sovereign wealth fund.

  • Reuters with additional editing by Sean O’Meara

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Sean O’Meara

Sean O’Meara is an editor at Asia Financial. He has been a newspaper man for over 30 years, working for local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. Passionate about football, cricket and rugby, he is particularly interested in the financing of sport.