Hong Kong may set up emissions trading market
Hong Kong is entering into race to open Asia’s first pollution credits exchange. The International Herald Tribune reports that The board of the Hong Kong stock exchange is considering a proposal today a pollution emissions trading system that could serve as a financial platform for companies from mainland China and other Asian countries entering into what is shaping into a $40 to $100 billion market by 2020, according to the International Herald Tribune. This proposal comes fast on the heels of an announcement earlier last month that the China Beijing Equity Exchange of setting up a national (and perhaps pan-continental) pollution emissions exchange (see also earlier post). These are promising indications of the increasing willingness in Asia to use market-oriented mechanisms to stem pollution, or it could simply reflect the growing understanding of the economic opportunities that climate change and pollution presents.
Humble origins of Hong Kong’s pollution trading market?
The IHT article seems to link the proposal to set up a pollution exchange to the willingness of the special administrative region to start tackling its pollution woes in earnest and as an extension of the pilot project between Hong Kong and the province of Guangdong to reduce pollution emissions. I guess I would reserve judgment for now. The Hong Kong stock exchange is a for-profit enterprise and not the Hong Kong government (although the government does have a small financial stake in the stock exchange); the setting up of a pollution trading market in Hong Kong, which is surely justified and motivated by purely financial reasons, does not necessarily mean Hong Kong companies will be required or encouraged to participate in emissions trading. Like any grand plan, the devil is in the details.
April 9th, 2008 at 8:12 am
The Hong Kong emission trading system is an important model for China.
We are setting up North America’s first social stock exchange connected to a green social network, called the Green Stock Exchange (GREENSX) at: http://greensx.com, which will be launched in the Summer of 2008 to begin trading.
This includes a eBAY.com trading system for carbon credits. It will also trade shares in social businesses. A social business is a business that makes a profit, but benefits society as well. We have a triple bottom line (economic + social + environmental).
Since all the listed companies on the exchange are pre-screened, evaluated, and audited according to social and sustainable guidelines set by the exchange, it will make it much easier for green investors to find and support social businesses. The GREENSX provides opportunities for small green Issuers to access public equity capital efficiently, while providing early stage investors, angel investors, and venture capitalists with greater liquidity.
It is now in the beta stage testing. Check it out at: http://greensx.com.
April 9th, 2008 at 8:43 pm
Hi Julian
Came across this post via googling for information on Climate finance in HK. Would you be able to give me more information you know about this i.e what is the status of emission trading/ climate finance in HK currently and how is HK placed in order to become a leader in this field. Is there further information on this trading market and was this setup?
I am interested to know more about it so pls feel free to drop me a line if willing.
Cheers
Shuchi