HKEX is exploring new products for carbon credit trading

Hong Kong Exchanges and Clearing (0388) is exploring other potential products for its carbon credit trading platform as it seeks to lead the green finance in Asia.

Paul Chow Koon-ying, group general counsel and group chief sustainability officer at HKEX, said the platform Core Climate which is now mainly offering carbon credit is exploring other potential products to expand market ecosystem and provide more choices for market participants.

Chow thinks the HKEX could play a role in eight aspects to help accelerate the Asia’s move towards a greener future.

They include advocating the proper role of carbon credits, with the Exchange encouraging corporations to prioritize direct emissions reductions, as well as facilitating the trading of internationally-recognized carbon credits, promoting the disclosure of environmental, social, and governance (ESG) information, including information on the use of carbon credits, and developing a sustainable financial ecosystem.

HKEX and the Securities and Futures Commission will organize a conference to promote the use of carbon credits in the financial sector.

Another important issue of the conference is how to establish a mature integrity framework to activate market liquidity and vitality, Chow said.

STAFF REPORTER