Hong Kong exchange enlists HSBC, Tencent to help create carbon market

China's Tencent to help Hong Kong develop a global carbon

Hong Kong exchange enlists HSBC, Tencent to help create carbon market

HONG KONG, July 5 (Reuters) - Hong Kong stock exchange has enlisted banks including HSBC (HSBA.L) and China's Tencent (0700. HK). On Tuesday, the Hong Kong stock exchange said the inclusion was to develop a global carbon market. As global efforts have been taken to combat climate change, they have spawned voluntary carbon markets, which allow emitters to offset their carbon footprint by purchasing credits issued by projects aimed at removing or reducing emissions. Hong Kong Exchanges and Clearing Ltd (HKEX) (0388. HK) said in a statement, “We are setting up the Hong Kong International Carbon Market Council."  Although it stated the intention of the launch, further details on the timeline are yet to decide.

The HKEX said that the inaugural members for the launch included six international and Chinese lenders, HSBC, Standard Chartered (STAN.L), BNP Paribas (BNPP.PA), ANZ (ANZ.AX), Industrial a& Commercial Bank of China (601398. SS) and Bank of China (601988. SS). Hong Kong's Cathay Pacific Airways and Chinese tech giant Tencent are also members of the council, which HKEX CEO Nicolas Aguzin said would "play a vital role in supporting our vision to build a leading carbon market". Aguzin added stating, "This is a significant step forward in our collective journey to achieving net-zero."

Singapore stated in May 2021 that it hoped to launch a global marketplace and exchange for high-quality carbon credits this year. Climate Impact X is a collaboration among Singapore Exchange, DBS Bank, and the sovereign fund Temasek.



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