HKEX Pilots Green Electricity Certificates with Mainland China
HKEX's Core Climate platform facilitated the cross-border purchase of approximately 100,000 Green Electricity Certificates by 15 firms through the Guangzhou Power Exchange Centre.
HKEX Completes Cross-Border Green Trading Pilots
Hong Kong Exchanges and Clearing (HKEX) has concluded its initial cross-border trading programmes for green products. These pilots involved HKEX's Core Climate platform connecting with mainland Chinese exchanges in Guangzhou and Shenzhen. Paul Chow Koon-ying, HKEX's group chief sustainability officer, confirmed the completion of these schemes.
The initiative marks a step in integrating Hong Kong's green finance infrastructure with mainland environmental markets, according to the exchange executive.
100,000 GECs Traded by 15 Firms
Under these programmes, 15 companies successfully acquired Green Electricity Certificates (GECs) via the Guangzhou Power Exchange Centre. Participating firms included the Airport Authority, China Power International Development, and Bank of China (Hong Kong). The total volume traded reached approximately 100,000 GECs, HKEX stated.
In mainland China, GECs serve as nationally recognised energy attribute certificates, with each representing one megawatt-hour of renewable electricity. Companies utilise these certificates to meet their renewable energy consumption targets.
Core Climate Expands Offerings
HKEX's Core Climate platform, established in 2022, operates as Hong Kong's international marketplace for carbon credits. The recent pilot programmes represent the first instance of GECs being integrated into this platform.
This expansion broadens the range of environmental products available for cross-border trading, allowing international participants on Core Climate to access mainland China's GEC market. The platform aims to facilitate corporate efforts towards sustainability commitments, according to HKEX.
The successful completion of these pilots expands the scope of green finance offerings in Hong Kong and the Greater Bay Area. It provides new avenues for Asian businesses, particularly those operating across Hong Kong and mainland China, to manage their environmental impact and comply with sustainability mandates.
Increased cross-border trade in GECs could enhance liquidity and standardisation for environmental products within the region. This development is expected to foster greater integration between Hong Kong and mainland China's green financial ecosystems, potentially attracting more corporate engagement in renewable energy markets.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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