This report aims to connect decarbonization solutions with necessary finance required to accelerate the net-zero transition in the GBA.
Highlights from the report:
- The Guangdong-Hong Kong-Macau Greater Bay Area (the GBA) is expected to lead by example in advancing its carbon emission peaking and carbon neutrality as well as creating a regional benchmark for green and low-carbon development. This is achievable.
- Clean electricity will contribute to the largest emission reduction in the long-term for all energy consumption sectors—manufacturing industries, road transport and buildings. In the mid-term, energy efficiency improvement and cleaner energies in manufacturing and buildings, and mode shift in transport will be the key to decarbonisation.
- The report’s analysis estimated that the GBA needs appr. US$1.84 trillion to achieve carbon neutrality by 2060, which equals to around 1% of cumulative GDP during 2020- 2060. We also estimated that US$200-700 billion will be needed for road transport, and US$150-300 billion for building sector.
- The report recommends financial practices to accelerate transition: establishing cross-regional agency coordination mechanism in the GBA; facilitating interoperability of transition finance taxonomies and information disclosure standards in Mainland China and Hong Kong as well as internationally; encouraging financial institutes and enterprises to set net-zero targets; facilitating development of regional carbon markets; developing transition-related financial toolbox to scale-up financing; and developing sector-specific financial solutions for key sectors.
Source: World Resource Institute