HKEX Core Climate completes two cross-border pilot schemes
HKEX's Core Climate has completed two cross-border pilots with Guangzhou Power Exchange and Shenzhen Green Exchange, boosting green certificate trading and carbon market connectivity in the Greater Bay Area. A cooperation agreement supports China's green power certificate market.
Hong Kong Exchanges and Clearing (HKEX) said its Core Climate platform has successfully completed two cross-border pilot schemes and signed a cooperation agreement with Guangzhou Power Exchange to support the further development of China's renewable energy green power certificate (green certificate) market.
The first pilot allowed Hong Kong companies to purchase green certificates through Guangzhou Power Exchange, while the second tested settlement arrangements for Shenzhen carbon emission allowance trading with Shenzhen Green Exchange. The two pilots broadened participation channels for green energy instruments in the region and strengthened connectivity among carbon markets in the Guangdong-Hong Kong-Macao Greater Bay Area.
HKEX General Counsel and Group Chief Sustainability Officer Chow Kwun-ying said the exchange is committed to promoting the commercial application of green certificates in Hong Kong, with the goal of developing Core Climate into a channel providing green certificate trading and related services. He added that HKEX will strengthen collaboration with partners to build a transparent, efficient and synergistic sustainable finance infrastructure in the region.
The first pilot was conducted by HKEX with Guangzhou Power Exchange, Shenzhen Power Supply Bureau and Hong Kong Quality Assurance Agency, bringing together 15 companies from various industries, including Airport Authority Hong Kong, Bank of China (Hong Kong), Henderson Land and Hong Kong and China Gas. The total trading volume was approximately 100,000 green certificates, with each certificate representing one megawatt-hour of renewable energy electricity.
In the second pilot, Core Climate provided settlement services for carbon emission allowance trading for three overseas institutions, marking the first time domestic and overseas carbon exchanges achieved cross-border settlement. This strengthened connectivity between Hong Kong and mainland China's carbon markets.