China should roll out carbon ‘plug-in’ program to woo foreign investors – expert


BOAO, China, April 21 (Reuters) – China is expected to launch a carbon market access pilot program with Hong Kong to allow foreign investors to enter the country’s growing green finance sector, said a leading Chinese expert on Thursday.

China’s existing login systems for stocks and bonds allow Hong Kong and overseas investors to trade securities listed on domestic stock exchanges and vice versa.

“We should establish such a channel – a bridge in Hong Kong, which will allow foreign investors to participate in certain liquid carbon markets,” said Ma Jun, chairman of the green finance committee of the China Society for Finance and Banking, a organization by the Chinese central bank.

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A pilot could link Hong Kong and the southern province of Guangdong and then be expanded across the country as liquidity improves, Ma, a former central bank adviser, told reporters at the annual Beijing Forum. Boao for Asia.

Guangdong said it would study the feasibility of a carbon trading market in the Guangdong-Hong Kong-Macau region, known as the Greater Bay Area, as part of efforts to bring the economies of the two closer together. mainland territories. Read more

China provides more loans for green finance than anywhere else in the world and this green credit is now expected to reach 20% of its total credit in the future, up from 10% now, Ma said.

Green bonds as a proportion of total Chinese bonds are expected to increase tenfold from the current level of around 2%.

China’s National Emissions Trading System (ETS) was launched last year after years of delay, but only covers the electricity sector, allocating permits based on “the carbon intensity” of a plant rather than its gross emissions.

The program is to be extended to other industrial sectors from this year, including steel, non-ferrous metals and building materials. Read more

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Reporting by Kevin Yao and Xu Jing; Additional reporting by David Stanway; Editing by Edwina Gibbs

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