Hong Kong Green and Sustainable Debt Market Briefing 2023

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The CASI In-person Capacity Building Event on 24 June 2024 marked the launch of the Climate Bonds Initiative’s Hong Kong Green and Sustainable Debt Market Briefing 2023. The latest report provides a comprehensive overview of Hong Kong’s green, social, sustainability, sustainability linked, and transition (GSS+) debt market. It is produced by the Climate Bonds Initiative in association with Hong Kong Monetary Authority and Hong Kong Green Finance Association, with support from Standard Chartered Bank.

Highlights of the report:

  • Aligned volume of GSS+ debt originating from Hong Kong reached USD18.2 billion, representing a year-on-year growth of 236% in 2023.
  • Most of this debt (USD15.6bn) was issued under the green theme, while the social theme accumulated USD2.6bn.
  • Hong Kong’s aligned green bonds volume in 2023 also reached the global top ten for the first time. 92% of the green bond volume (USD14.4bn) came from the HKSAR Government and the rest came from financial corporates.
  • The HKSAR Government became the largest source of aligned government bonds in Asia, and is now the 5th largest cumulative government green bond issuer in the world, demonstrating its commitment to achieve its climate goals of halving emissions by 2035 and reaching net zero by 2050, and position as a GSF hub in the region.
  • By the end of 2023, Climate Bonds Initiative recorded8tn in global green bond volume, and is expected to exceed USD3tn by mid-2024. Meeting Climate Bonds Initiative’s target of USD5tn annually by 2025 requires a significant increase in large deals. Hong Kong can play a crucial role in capital mobilisation.

Dr. Ma Jun, Chairman and President of Hong Kong Green Finance Association said “Transition finance is a significant trend in global sustainable finance development, offering tremendous growth opportunities in financing the transition of high carbon-emitting industries in Asia. Hong Kong can capture this opportunity by expanding its local CGT-compliant taxonomy to include transition activities, to mitigate greenwashing and facilitate capital flows across jurisdictions. As the leading Asian government issuer of green debt, Hong Kong can further pioneer transition products linked to decarbonization performance and incentives, develop transition-related disclosures, and foster a science-based transition approach, solidifying its position as a leading sustainable financing hub for Asia.”

Download the report to read more: Link here

Press release: Link here

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