Shenzhen Emission Exchange and Hong Kong Exchanges and Clearing Limited signed a Memorandum of Understanding (MoU) to jointly support the green and low-carbon development of the Greater Bay Area

Securities Times reporter Wu Xian

On 31 October, the Shenzhen Emissions Exchange, a subsidiary of Shenzhen Exchange Group, signed a Memorandum of Understanding (MoU) with Hong Kong Exchanges and Clearing Limited (HKEX) to jointly promote the prosperity and development of the carbon market ecosystem in Shenzhen and Hong Kong, as well as the entire Greater Bay Area.

According to the MoU, the Shenzhen Emission Exchange and the Hong Kong Stock Exchange will jointly carry out cooperation in the connection of the carbon markets of the two places, explore new models of climate investment and financing development, strive to jointly build a carbon inclusive system that benefits the entire Greater Bay Area, and aim to create a vibrant and sustainable regional financial ecosystem to help achieve the "3060" carbon peak and carbon neutrality goal.

Liu Chang, deputy director of the Climate Change Division and second-level researcher of the Shenzhen Municipal Bureau of Ecology and Environment, said: Shenzhen, as the first batch of national low-carbon pilot cities and carbon trading pilot cities, has seized the opportunity and taken the lead in demonstration, and adopted a series of effective policies and measures to promote Shenzhen's carbon emission intensity to one-fifth of the national average, forming a green and low-carbon development model with Shenzhen characteristics. In the future, it is hoped that Shenzhen and Hong Kong will give full play to their carbon market experience, economic and location advantages, create a new model of Shenzhen-Hong Kong carbon trading cooperation, promote the deepening development of the carbon market in the Guangdong-Hong Kong-Macao Greater Bay Area, and promote the realization of the regional carbon peak and carbon neutrality goals.

Wu Jiang, Deputy General Manager of Shenzhen Exchange Group and Chairman of Shenzhen Emission Exchange, said: "We are pleased to sign a memorandum of cooperation with the Hong Kong Stock Exchange. It is hoped that the two sides will take this MOU as an opportunity to further leverage their respective advantages, base themselves on the Greater Bay Area and connect with the world, deepen cooperation and discussions, promote the implementation of the plan, effectively promote the green and high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area, and jointly plan a new chapter of development in the context of responding to global climate change.

In October 2022, HKEX announced the launch of Core Climate, an international carbon marketplace dedicated to connecting capital with climate-related products and opportunities in Hong Kong, Chinese mainland, Asia and beyond. Founded in 2010, the Shenzhen Emission Exchange undertakes the country's first carbon emission trading platform approved for the participation of overseas institutions, and as the secretariat of the Shenzhen Green Finance Committee, it is committed to serving the development of the real economy through green finance innovation and practice. In 2023, the Shenzhen Climate Investment and Financing Promotion Center will be established to list and trade Shenzhen's carbon inclusive certified emission reductions.