Green finance: Hong Kong agency to offer net-zero certification for firms under pressure to disclose carbon footprint and climate ambitions
- We believe carbon reduction will transition from a voluntary initiative into a basic requirement in the next few years, says HKQAA’s deputy CEO
- Two types of certifications validating achievement of net-zero emissions, or commitment and progress towards such goals, will be offered by the agency
The self-financed, non-profit government body is the city’s biggest provider of assurance services for green and sustainable bonds and loans, and has issued more than 200 certificates for deals worth US$35 billion since 2018.
“We believe carbon reduction will transition in the next few years from a voluntary corporate initiative into something of a basic requirement in many industries,” Chan Pui-cheong, HKQAA’s deputy CEO, said in an interview on the sidelines of a sustainable finance symposium it hosted on Friday. “We want to provide companies, investors and other stakeholders with some tools to showcase their progress and achievements.”
Two types of certifications will be offered, which either validate an entity’s achievement of net-zero emissions, or their commitment and progress towards such goals.
Net zero is achieved by making investments to reduce one’s carbon emissions and offsetting any residual amount by buying credits to fund other parties’ carbon reduction projects. Carbon neutrality, while similar, can be achieved solely through offsets without reducing one’s own carbon footprint.