China’s emissions trading scheme is a welcome development, but its size belies its narrow scope and lack of allure for investors. It needs to cover more of China’s emissions, go beyond the electricity sector and let prices reflect the true cost of carbon.
Public investment to support Hong Kong’s most promising sectors is needed to help cushion the impact of the pandemic on an economy that was already struggling. If the EU can get 27 countries to agree on a recovery fund fairly quickly, so can Hong Kong, provided it has the will.