Closing the gaps to make region greener

Role of Greater Bay Area

The Guangdong-Hong Kong-Macao Greater Bay Area’s regional collaboration platform is also vital for fortifying Hong Kong’s green financing business ecosystem.

“With Hong Kong designated by the central government as the Greater Bay Area’s green financing hub, the HKMA is in discussions with the People’s Bank of China and other partners to see whether it’s possible to design some type of fast-track programs. Mainland companies requiring financing to switch to a carbon-zero economy may also get approval for issuing green bonds in Hong Kong,” said Yue.

The SAR government and financial regulators should study the city’s potential in the carbon trading business because both governments and corporations are trying to achieve carbon neutrality.

Global business auditing firm KPMG plans to reduce the carbon footprint of its offices worldwide with the aim of being carbon-neutral by 2030 by changing the business travel mode from air to rail, slashing international travel by substituting it with online meetings, retrofitting electricity in office premises, and utilizing green buildings.

As governments and businesses have to pay for those carbon offsets, buyers need to be guaranteed of the quality and pricing of these offsets. This will be a big area of development requiring market regulation and protection, driving the need for a global pricing model of carbon offsets to be developed.

“I expect the demand for and prices of carbon offsets to increase, enabling Hong Kong to play a role in carbon exchange and, perhaps, consider creating a ‘carbon connect’ program between the SAR government and the central government, as well as companies across the border,” Woo said.

Cheung is optimistic about green investment prospects, such as energy saving, pollution prevention, solar energy and green transport in the Greater Bay Area as the 11-city cluster has a mix of traditional manufacturing, and new data information industries. The central government too wants to develop the Greater Bay Area into a sustainable city-cluster.