2023 GBA-GFA I HKGFA Meeting

Strengthening GBA Sustainable Finance Collaboration

HONG KONG,April 24,2023 --Hong Kong Green Finance Association ("HKGFA") and the Greater Bay Area Green Finance Alliance's ("GBA-GFA" or "the Alliance") co-organised a closed-door policy dialogue meeting for policy makers and the financial services to strengthen sustainable finance collaboration in the Greater Bay Area ("GBA") with the support from Financial Services and the Treasury Bureau of the Government of Hong Kong SAR,the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) in Hong Kong today. The meeting showcased key milestones and progress made by GBA-GFA'ssevenworking groups,and discussed ways to further integrate GBA's sustainable finance markets and to enhance Hong Kong's role as a super connector between Mainland China and the rest of the world.

The Meeting's opening session was attended and supported by senior officials from the People's Bank of China ("PBOC"),Hong Kong Special Administrative Region ("HKSAR"),the Macao Special Administrative Region,Shenzhen,and Guangzhou. Mr. Christopher Hui (Secretary for Financial Services and the Treasury,HKSAR of the PRC),Ms. Julia Leung Fung Yee (Chief Executive Officer (CEO) of the Securities and Futures Commission),Mr. Wang Xin (Director General of PBOC Research Bureau),Mr. Tong Shiqing (Deputy Director General,Guangdong Financial Supervisory Authority),Mr. He Jie (Member of the National Committee of CPCC,Director General of Shenzhen Municipal Financial Regulatory Bureau),and Mr. He Huaquan (Deputy Director-General of Guangzhou Municipal Local Financial Supervision and Administration Bureau) delivered their opening remarks which highlighted the importance the GBA green finance collaboration in supporting China's climate and sustainable development agenda.

Mr. Christopher Hui,Secretary for Financial Services and the Treasury of HKSAR,said in his opening remarks,"It has been said that the GBA has an important strategic position in the new development pattern of the country. The HKSAR Government and financial regulators attach great importance to synergised collaboration and mutual complementation of advantages with other cities in the GBA,jointly promoting the high-quality development of green and sustainable finance in the GBA and proactively contributing to our country's '3060 Dual Carbon Targets'."

Mr. Vong Lap Fong,the Monetary Authority of Macao; Mr. He Huaquan,Guangzhou Municipal Local Financial Supervision and Administration Bureau; Ms. Salina Yan,Financial Services and the Treasury (Financial Services),HKSAR; Mr. Christopher Hui,Financial Services and the Treasury,HKSAR; Dr. Ma Jun,HKGFA; Ms. Julia Leung Fung Yee,the Securities and Futures Commission (SFC); Mr. He Jie,Shenzhen Municipal Financial Regulatory Bureau; Mr. Kenneth Hui,the Hong Kong Monetary Authority

GBA-GFA facilitates the exchange and cooperation with the GBA,leveraging Hong Kong's strength as an international sustainable finance centre to accelerate the allocation of capital into sustainable projects and technology. As a founding member and the rotating Presidentof GBA-GFA (2022-23),HKGFA has dedicated resources tofurther strengthen sustainable finance coordination and collaboration amongstthe seven working groups in the GBA and support the HKSAR government's plans to develop a green classification system based on Common Ground Taxonomy,align local markets with international standards,promote financial innovations and applications in greening thesupply chain andtechnologies,as well as financing green buildingsand climate investment funds.

Dr. Ma Jun,Chairman and President of HKGFA,said in his remarks,"The GBA-GFA meeting hosted by HKGFA today provides a useful platform for policy dialogue between the market participants and GBA financial regulators to identify market barriers and discuss options to improve cross-border green capital flows within the GBA. Many of these measures,once implemented,could help enhance the market capacity to generate bankable green projects in the GBA area and enable lower-cost financing and more cross-border services."

Dr. Ma Jun,Chairman and President,HKGFA

GBA-GFA continues to work with the GBA and Hong Kong government,policymakers,regulatory bodies and the private sector:

In the meeting,GBA-GFA introduced a new working group,GBA Technology Working Group,which aims to develop an eco-system to support and finance green technologies and help launch green tech accelerators. GBA-GFA's six working groups achievements and progress were highlighted as follows:

CGT-based Taxonomy Development: Building on the success of the previous research projects,HKGFA members and the Guangdong Green Finance Committee has commenced Phase 3 to propose a CGT based taxonomy for Hong Kong covering material green activities in the GBA and expanding to include transition activities.

Decarbonising Buildings in the GBA – Pilot of Green Building Collaboration: After completing the first 2 phases of the project with 3 reports issued,the 3rd phase focuses on the Greater Bay Area. A key recommendation out of the nine to reduce additional onshore transaction costs,includes 1) green building certification fees (covering both local and international certifications such as IFC Edge and LEED); and 2) expand the existing mainland green taxonomies (e.g. Green Industry Guidance Catalogue and Green Bond Supported Project Catalogue) to include international green building certifications such as IFC Edge and LEED.

GBA Deep Decarbonisation Roadmap and Transition Finance – Report Launch:

The report highlights GBA requires an additional US$1.8tn to achieve 30/60 carbon neutrality goal with six key recommendations to unlock capital required. A working group will be formed to carry out a series of pilot projects on road transportation,building and manufacturing to demonstrate the use of transition finance.

GBA Climate Change Investment Fund

Research on the establishment of a GBA climate fund to enable domestic and foreign fund investment into climate projects in GBA focused on 3 areas: development status of climate funds in GBA,Shenzhen climate investment fund,financial technology and data support,and key policy supports that can help setting up a climate fund in the GBA.

Low Carbon Transition of Supply Chain in the GBA Based on Local Industrial Structure:

Review and identify how to support green supply chain finance innovation and promote the reduction of carbon emission intensity of the supply chain ecosystem. The working group further suggests integrating green supply chain finance with the thriving developments in inclusive finance,technology financing,etc.

Mutual Recognition of Green Finance Standards in GBA/Green Finance-related Third-party Service in GBA

Engage in joint research to propose potential alignment and promote various green and sustainable finance standards including environmental information disclosure of financial institutions,ESG disclosure,transition finance related information disclosure,etc.

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About Hong Kong Green Finance Association

Founded in September 2018,Hong Kong Green Finance Association (HKGFA) provides a unique platform that supports the development of green finance and sustainable investments in Hong Kong and beyond. It aims to mobilise both public and private sectors resources and talents in developing green finance policies,to promote green finance business and product innovation within financial institutions. HKGFA's main goal is to position Hong Kong as a leading international green finance hub by providing greater access and opportunities for Hong Kong's financial institutions to participate in green financing transactions locally,in Mainland China and in markets along the Belt & Road. This is in line with the global trend of implementing the UN sustainable development goals and the Paris Agreement.

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