Search Climate Insights Directory

The 2021 Hong Kong GSS+ market saw significant expansion, with USD 14bn in labelled debt from Hong Kong issuers and a quadruple increase in GSS+ debt arranged or issued in the city to USD 57bn. Growth was driven by the HKSAR Government's green bond programme and a diversifying issuer base, including real estate and financial corporates. The report highlights the emergence of transition finance and the adoption of the Common Ground Taxonomy to facilitate cross-border green finance between China and the EU.

The Hong Kong green bond market in 2020 saw a record number of deals but an 18% decline in total volume to USD 2.09bn. Low-carbon buildings remained the primary theme for proceed allocations, though waste reached a record high. The market is supported by new government initiatives, including a 2050 carbon neutrality pledge and the Green and Sustainable Finance Grant Scheme. While local issuance is significant, mainland China entities continue to drive the broader green debt market arranged in Hong Kong.

The Hong Kong green bond market in 2019 saw a slight decrease in issuance by domestic entities to USD 2.6 billion, but achieved greater issuer diversity and the launch of the first government green bond. Low-carbon buildings dominated proceed allocations at 61%. The market is increasingly characterized by local currency denomination and a strong connection to the Greater Bay Area, with total GBA-domiciled issuance reaching USD 6.4 billion. Regulatory bodies like the HKMA and SFC have introduced measures to enhance ESG disclosures and sustainable banking frameworks to bolster the city's status as a regional sustainable finance hub.