On April 23, the GBAGFA Climate Fund Working Group, led by Shenzhen Green Exchange, and under the collaboration of HKGFA, convened policymakers and local bureaus in Shenzhen and industry leaders for a high-level discussion on scaling climate investment in the Greater Bay Area.

The roundtable discussion brought together key stakeholders from:

• Shenzhen Ecology and Environment Bureau
• Shenzhen Taxation Bureau, State Taxation Administration
• Qianhai Financial Development Bureau
• Greater Bay Area Green Finance Alliance (GBAGFA)
• Shenzhen Green Exchange
• Hong Kong Green Finance Association and its members

Working Group members presented their findings from the Climate Fund Research Report, focusing on the key challenges and regulatory/tax recommendations to growing climate funds in the GBA including:

• Develop public-private partnership models such as blended finance for risk mitigation
• Adopt AI/digital technology to help monitor emissions
• Clear definition of withholding income tax rate for profits derived by an offshore climate fund
• Clarify the nature of carbon transactions and related tax treatments
• Allow QFLP funds to invest in certain immovable properties with “climate change” features
• More stringent disclosure requirements for underlying assets of private funds

The local bureaus acknowledged the recommendations and shared recent initiatives that supports foreign direct investments (QFLP/QDLP) and climate financing in Shenzhen, including innovative solutions for emissions disclosures such as “Enterprise Carbon Account 企业碳账户”.

This dialogue marks a critical step in mobilising finance for the region’s net-zero transition. As a founding member of the GBAGFA, HKGFA will continue to facilitate public-private discussions, and promote innovative financial solutions to connect green investment demand with supply in the GBA region.

Special thanks to HKGFA members joining the roundtable and contributing their valuable insights: Florence Yip, PwC (Julianne Wang, Eric Gong, Collin Xiong), China Galaxy International (Ivan Li, Loran Chen), and Our Hong Kong Foundation (Pascal Siu).