HKEX’s Core Climate: what is it and how it works

Carbon markets have been established around the world with an aim to reduce global greenhouse gas emissions. These markets provide incentives to businesses and individuals to reduce their carbon footprint and help curb the effects of climate change. As an international financial centre, Hong Kong is playing an important role in helping develop a regional carbon market to support the global decarbonisation journey. 

In October 2022, HKEX launched a voluntary carbon market, Core Climate, to provide a trading platform for carbon credit and other climate-related instruments. 

Core Climate connects capital with climate-related products and opportunities in Hong Kong, China, Asia and beyond. Participants will be able to source, hold, trade, settle and retire voluntary carbon credits through the Core Climate platform. The platform has been building momentum, with the number of participants tripling to nearly 70 in less than a year. At present, Core Climate is available only to institutional investors.  

Core Climate offers quality carbon credits from more than 40 internationally-certified projects in Asia, South America and West Africa, covering forestry, solar, wind and biomass initiatives. All projects listed on Core Climate, including carbon avoidance, carbon reduction, and carbon removal projects, are currently verified against the Verified Carbon Standard by Verra.

Core Climate is currently the only carbon marketplace globally that offers Hong Kong Dollar and Renminbi settlement for international voluntary carbon credit product, helping to elevate Hong Kong’s role as an international offshore RMB centre and a leading sustainable finance hub.

Looking ahead, HKEX will continue to work closely with regulators, companies, institutions, investors, and other stakeholders in the climate value chain to further enhance Core Climate, supporting the development of regional voluntary carbon markets and building a sustainable future.

Tap Read More for details.