This is a report with the intention of exploring Hong Kong’s potential as a regional financial hub for attracting capital to finance infrastructure projects that are green and sustainable, in light of the urgent need to transition to a low carbon or net zero economy. The Report is focusing on the financial vehicle of investment funds, as the green and sustainable bonds and loans markets are relatively more developed.
This Report focuses on Hong Kong’s potential to become a hub attracting capital for G & S Infra especially through the financial vehicle of investment funds. It focuses on aspects that would be relevant should the Hong Kong Government chooses to introduce policies to facilitate or attract the setting up of such investment funds in Hong Kong, from potential tax incentives to fund structures to providing guidance on what would be G & S Infra to avoid “greenwashing”, i.e. misleading claims by borrowers/issuers about the positive environmental impacts of the green projects. From the starting point of attracting capital for investment funds, this Report examines the green and sustainable definitions widely adopted by the international capital markets, which are complementary to the civil engineering industry-led infrastructure-specific sustainability frameworks or rating schemes. While a variety of guidelines and standards are available in the market to provide guidance for the identification of infrastructure projects as well as green and sustainability rating, this Report seeks to explore some of the most representative market practices instead of providing an exhaustive list of such practices and their application.
This report is published by Hong Kong Green Finance Association (HKGFA) as a project of the Policy Research And Dissemination Working Group.