Two of the world’s largest carbon-asset companies have established their presence in Hong Kong and signed one of the city’s most substantial individual carbon trading deals to date, involving a transaction valued at $10 million and 274,000 metric tons of emissions.
The signatories of this agreement — European company Planex LTD and Arx Veritas — made the announcement during the inaugural ceremony of the Carbon Offset Association, a platform dedicated to accelerating the development of the carbon trading market in Hong Kong. Stakeholders emphasized Hong Kong’s diverse advantages, particularly its robust financial system, in driving forward carbon trading initiatives.
Planex LTD representatives characterized the decision to base operations in Hong Kong as a “natural choice”. They highlighted Hong Kong’s strengths as a pivotal link between the Chinese mainland and numerous Western nations, alongside its status as a key financial center in Asia. Expressing optimism about the future of the carbon trading sector, the company firmly believes that by leveraging Hong Kong’s strengths, it can assist businesses with expanding their footprints in the Asian market.
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During the same occasion, multiple relevant companies also unveiled new ventures within the carbon trading sector. Osapiens, a provider of ESG (environmental, social, governance) software solutions, announced its plans to host a high-profile ESG conference in Hong Kong next year, with the aim of bolstering Hong Kong’s standing in the international green economy.
Moreover, Global Legacy, an international firm specializing in family office services, said it will facilitate investments in green industries in Hong Kong for 2,000 international family offices. The company expressed confidence in collaboration, citing Hong Kong’s robust financial services, solid policy backing for green sectors, and favorable tax system as key factors driving their decisions.
Witnessing these landmark collaborations, Nicholas Ng Yat-fung, chief executive of the Carbon Offset Association, said that Hong Kong is unique globally as the only place where settlements can be made in Chinese yuan, Hong Kong dollars, and US dollars. He highlighted the city’s robust investment infrastructure, supportive policies, and most importantly, its potential as a hub for talent.
He said that talent development in the carbon services industry is a key focus of the organization in the future. During the ceremony, the association has already signed a collaboration agreement with ESCP Business School, one of the world’s top business schools, aiming to cultivate 2,000 professionals in the field over the next three years, targeting Asian markets. He said he believes the association has the potential to introduce 15 to 20 carbon service enterprises and facilitate carbon transactions worth HK$15 billion ($1.92 billion) in the next three years, creating 800 to 1,000 jobs.
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China’s current carbon trading system sets emission limits for companies such as those in coal-fired power generation sector. At the end of each compliance period, these companies have the option to trade surplus carbon allowances or purchase additional allowances if they surpass their allocated limits.
The country’s carbon trading market, launched in July 16, 2021, has facilitated the trade of about 670 million tons of carbon emission allowances, valued at nearly 46.2 billion yuan ($6.48 billion), as of mid-July.
Hong Kong Exchanges and Clearing Ltd launched its Core Climate in October 2022, which is currently the only carbon marketplace that offers Hong Kong dollar and renminbi settlement for the trading of international voluntary carbon credits. The platform has over 90 participants and offers quality carbon credits from internationally certified projects in Asia, South America and West Africa.
Contact the writer at amberwu@chinadailyhk.com
