HKEX and Shenzhen Emission Exchange signed a Memorandum of Understanding (MoU) to promote the development of the carbon market in the Greater Bay Area

HONG KONG, Oct. 31 (Xinhua) -- Hong Kong Exchanges and Clearing Limited (HKEX) announced on Oct. 31 that it has signed a Memorandum of Understanding (MoU) with the Shenzhen Emissions Exchange (SZSE) to jointly promote the development of the carbon market ecosystem in Hong Kong and the entire Guangdong-Hong Kong-Macao Greater Bay Area.

According to the MoU, HKEX and SZSE will jointly explore opportunities for carbon market connectivity and climate finance between the two places, with the goal of creating a vibrant and sustainable regional financial ecosystem, fully supporting the country to peak carbon emissions before 2030 and achieve carbon neutrality before 2060, and promote the healthy development of green finance in Asia.

Hong Kong Exchanges and Clearing Limited's Group Head of Emerging Business and Fixed Income & Currencies said the partnership underscores both parties' commitment to building a sustainable and prosperous carbon market in the Greater Bay Area and beyond. Combining their respective strengths, the two parties will work together to build a vibrant and innovative market in the region, providing high-quality carbon projects while facilitating interaction between the mandatory and voluntary carbon markets in Chinese mainland and internationally.

Shenzhen Emission Exchange was established in 2010 and launched the country's first carbon trading market in 2013, which is the country's first domestic carbon trading market to introduce foreign investors and the country's first batch of voluntary greenhouse gas emission reduction trading markets.