Hong Kong Exchanges and Clearing : Early Momentum for Core Climate, Hong Kong’s New International Carbon Marketplace

Corporate

24 Nov 2022

• More than 40 trades completed, by over 20 Core Climate participants, in first four weeks since launch, representing around 400,000 tonnes of carbon credits
• More than 30 international projects now available on the platform
• Carbon credits denominated in both HKD and RMB, driving accessibility and ensuring flexibility for participants

Hong Kong Exchanges and Clearing Limited (HKEX) today (Thursday) celebrated the first four weeks of trading on Core Climate, Hong Kong's new international carbon marketplace at HKEX Connect Hall.

Since Core Climate launched on 28 October 2022, it has generated significant momentum for voluntary carbon trading in the region. The platform recorded more than 40 trades in less than a month between 28 October and 24 November 2022, representing a total volume of around 400,000 tonnes of carbon credits.

HKEX Chairman Laura M Cha said: "At HKEX, we are fully committed to playing a leading role in creating a low-carbon, climate-resilient global economy. With its proximity to Mainland China, the world's largest carbon market, Hong Kong has both a unique role to play in China's carbon action plan and as a sustainable finance hub for the region. Core Climate is a ground-breaking new initiative that will help expedite the low-carbon transition journey at scale in Hong Kong, Mainland China, Asia and beyond."

HKEX CEO Nicolas Aguzin said: "The world needs transformational change to fight climate change and capital markets have a key role to play in driving the pressing global climate agenda. The launch of Core Climate is a significant milestone in our journey to develop Hong Kong into Asia's premier carbon trading hub. Since its launch, the platform has been very well received by the market, attracting wide participation from different regions and sectors. Thank you for joining us on this exciting and meaningful journey as we work together to secure a sustainable future for us and for generations to come. "

Core Climate is currently the only carbon marketplace that offers HKD and RMB settlement for the trading of international voluntary carbon credits, driving accessibility to the market and further enhancing Hong Kong's role as a world-class offshore RMB hub and premier green and sustainable finance centre.

Quality carbon credits come from more than 30 internationally-certified projects that are now available on the platform, generated from forestry, solar, wind, hydropower and biomass initiatives in Asia, South America and West Africa. All projects available on Core Climate, including carbon avoidance, reduction and removal projects, are verified against the Verified Carbon Standard by Verra.

Today's ceremony brought together more than 100 participants, including Hong Kong Secretary for Financial Services and the Treasury Christopher Hui, HKEX Chairman Laura M Cha, HKEX Chief Executive Officer Nicolas Aguzin, other senior HKEX executives, delegates of corporate participants completing the first batch of trades on Core Climate, inaugural members of the Hong Kong International Carbon Market Council and other friends and partners in the carbon and ESG space.

HKEX Co-Head of Markets Glenda So said: "We are very pleased with the very positive reaction from the market towards Core Climate and are especially encouraged by the diverse portfolio of companies that have joined our platform. On behalf of HKEX, I would like to express our thanks to Core Climate participants and members of the International Carbon Market Council, whose input and support has and continues to be, instrumental to the growth of the carbon community."

Core Climate has attracted more than 20 corporate entities from a wide range of sectors in Hong Kong, Mainland China and internationally. The participants include:

Bank of China (Hong Kong) Ltd	Huatai Capital Investment Limited
Carbon Growth Partners	Huatai Financial Holdings (Hong Kong) Limited
China Carbon Neutral Development Group Limited	Industrial and Commercial Bank of China (Asia) Limited
China Energy Conservation and Environmental Protection Group	InnoBlock Technology Limited
CICC Commodity Trading Limited	MioTech
China Securities (International) Finance Holding Company Limited	New World Development Company Limited
China State Construction International Holdings Limited	SPIC Carbon Asset Management Co. Ltd
CITIC CLSA	Standard Chartered Bank (Hong Kong) Limited
CLP Holdings Limited	Tencent Holdings Limited
Guotai Junan Investments (Hong Kong) Limited	The Hong Kong and China Gas Company Limited
Hong Kong Exchanges and Clearing Limited	Timing Carbon Asset Management Co., Ltd

Looking ahead, HKEX will continue to work closely with the Hong Kong International Carbon Market Council and all key stakeholders across the climate value chain to further enhance Core Climate, supporting the growth, vibrancy and maturity of the carbon ecosystem in the region.

To learn more about Core Climate, please visit the HKEX Website or contact us at [e-mail].

From left to right, Hong Kong Permanent Secretary for Financial Services & the Treasury (Financial Services) Salina Yan, HKEX Chairman Laura M Cha, Hong Kong Secretary for Financial Services and the Treasury Christopher Hui, HKEX CEO Nicolas Aguzin at the gong-strike ceremony to celebrate the launch of Core Climate.

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world's major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world's leading IPO market and as Hong Kong's only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia's most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

www.hkexgroup.com

Ends