Hong Kong plans carbon emissions trading market with Guangdong and Macau

Hong Kong is planning to establish a unified carbon emissions trading market in Guangdong, Hong Kong, and Macau to attract foreign investors, according to a HKEX executive.

Grace Hui, head of Green and Sustainable Finance of Hong Kong Exchanges and Clearing (0388), told lawmakers in a panel meeting that a national carbon trading market started in Shanghai in July.

However, transactions were comparatively few due to a lack of foreign investors and futures products. She said it is hard for Hong Kong to develop a carbon trading market on its own. It will take reference of Shenzhen's experience in developing a unified market for Guangdong, Hong Kong and Macau.

HKEX has signed a memorandum of understanding with Guangzhou Futures Exchange last month to boost sustainable development in the two regions.