On 28 October 2022, the Hong Kong Exchanges and Clearing Limited (“HKEx”) launched Core Climate, an international carbon marketplace designed to allow for the trading of voluntary carbon credits and instruments, which provides a best-in-class, trusted market infrastructure and helps connect capital with climate-related products and opportunities in Hong Kong, Mainland China and globally. Core Climate participants will be able to source, hold, trade, settle and retire voluntary carbon credits through the Core Climate platform.  

According to HKEx, the carbon credits on the platform will come from internationally-certified carbon projects from around the world, including carbon avoidance and reduction projects such as deforestation avoidance and removal projects such as reforestation. All carbon credits generated by projects listed on Core Climate will be issued under international standards, such as the Verified Carbon Standard by Verra.

The launch of Core Climate follows HKEx’s formation of Hong Kong International Carbon Market Council in July this year, which comprises leading corporates and financial institutions focused on supporting the development of an international carbon marketplace.

The initiative is also welcomed by the Green and Sustainable Finance Cross-Agency Steering Group co-chaired by the Hong Kong Monetary Authority and the Securities and Futures Commission, which published the Preliminary Feasibility Assessment of Carbon Market Opportunities for Hong Kong in March this year, and supports the development of a global, high quality voluntary carbon market and Hong Kong’s growth as a premier carbon hub in Asia.

Further details on Core Climate can be found in HKEx’s press release here.