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HSBC
BusinessBanking & Finance

Carbon neutrality: HSBC invests US$100 million in Bill Gates-led green tech programme to support decarbonisation of heavy polluting sectors

  • Bank will become an anchor partner in Breakthrough Energy Catalyst, an initiative within the Breakthrough Energy network founded by Gates
  • In December, HSBC unveiled a timeline for ending the financing of coal projects

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A bus stop in Hong Kong’s North Point. Photo: Xiaomei Chen
Daniel Ren
HSBC, which has set itself the goal of net-zero carbon emissions in its loans portfolio by 2050, has joined a global programme to accelerate the development of green technologies with a US$100 million investment.
The largest bank in Hong Kong and in Europe said on Monday that, following the investment, it will become an anchor partner in Breakthrough Energy Catalyst, an initiative within the Breakthrough Energy network founded by Microsoft’s Bill Gates.
“A small number of green technologies will reshape the industrial landscape of the world over the next five to 10 years,” Noel Quinn, CEO of London-based HSBC, said in a statement. “I genuinely believe this groundbreaking partnership can help bring these much-needed clean solutions to market and build a more sustainable world.”

When financial institutions such as HSBC announce net-zero carbon goals, they refer to the net emissions of their clients. Net-zero can be achieved by making investments to reduce one’s carbon emissions and offsetting any residual amount by buying credits from other parties’ carbon reduction projects.

In December, HSBC unveiled a timeline for ending the financing of coal projects to achieve its net-zero carbon emissions goal. It plans to reduce its exposure to coal mining and coal-fired power plants by at least a quarter by 2025 and to halve it by 2030, from last year’s levels. The bank has already stopped financing new coal-fired power plants and coal mines.

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China completes its first greenhouse gas observation network

China completes its first greenhouse gas observation network

Breakthrough Energy Catalyst is looking to leverage private-public capital to support commercialisation of new technologies that will help achieve net-zero emissions by 2050.

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