Hong Kong's sustainable bond market leads Asia with a 236% year-on-year growth in 2023.

On June 24, the latest report from the Climate Bonds Initiative revealed that, driven by the issuance of government bonds by the Hong Kong Special Administrative Region Government, Hong Kong's sustainable bond market has experienced its largest growth to date, surpassing other regions in Asia and for the first time entering the top ten government issuers globally in terms of green bond issuance. The Climate Bonds Initiative released the sixth edition of the "2023 Hong Kong Sustainable Debt Market Report," which comprehensively analyzes Hong Kong's sustainable debt market. The report received support from the Hong Kong Monetary Authority and the Hong Kong Green Finance Association, as well as sponsorship from Standard Chartered Bank. The report shows that Hong Kong's sustainable bond market has experienced its largest growth ever. In 2023, the total GSS+ debt from Hong Kong reached $18.2 billion, representing a 236% increase from the previous year. The majority of sustainable debt in Hong Kong is green-themed, with a total issuance of $15.6 billion, while social-themed bonds accumulated $2.6 billion. In 2023, the issuance volume of Social & Sustainable (S&S) bonds from Hong Kong issuers increased for the third consecutive year to $2.56 billion, compared to $1.98 billion in 2022. The number of green bonds in Hong Kong that meet the Climate Bonds Database standards entered the global top ten for the first time in 2023, with a 173.3% increase from the same period last year. This was mainly due to the record-breaking $1.4 billion issuance by the Hong Kong SAR Government in a single year. Issuances from the Hong Kong SAR Government accounted for 92% of its green bond issuances ($14.4 billion), with the remainder coming from financial institutions. The Hong Kong SAR Government was the fourth largest government green bond issuer in 2023 (after the UK, Germany, and Italy), and the fifth largest cumulative government green bond issuer. As of the end of 2023, global green bond issuances reached $2.8 trillion, projected to exceed $3 trillion by mid-2024. To achieve the goal of $5 trillion in climate bonds annually by 2025, there is a need for a significant increase in large issuances. Hong Kong plays a crucial role in capital mobilization, supporting the transformation towards a green and sustainable future in both Hong Kong and mainland China, benefiting future generations. In the 2024-25 budget, the Hong Kong SAR Government announced plans to issue bonds worth approximately HK$95 billion to HK$135 billion annually from 2024-25 to 2028-29, including green/sustainable bonds, and extended the "Green and Sustainable Finance Grant Scheme" until 2027 to demonstrate its commitment to achieving its climate goals of halving emissions by 2035 and achieving net zero emissions by 2050, as well as positioning Hong Kong as a leading green finance center in Asia.