Climate finance: a year on, Hong Kong’s carbon credit market sees scant volume as its bridge role to China fails to materialise

A year has passed since Hong Kong launched its first market for trading voluntary carbon credits, with high hopes of speeding up the shift to a low-carbon economy. However, the market, known as Core Climate, hasn't seen much action. The number of credits traded is much lower than expected, and the dream of connecting with China's vast market hasn't happened yet. nnThe lack of connection with China's carbon markets, limited interest within Hong Kong, and doubts about the quality of carbon credits have slowed down Core Climate's growth. Despite this, the team behind Core Climate remains optimistic. They've been focusing on building a community around the market, and they're happy with the progress in that area. They also have plans to make sure the carbon credits are of high quality and can be trusted. nnHong Kong has big goals to become a leader in green finance, and Core Climate is part of that vision. The city has been successful in other green initiatives, like green bonds, and they're working on agreements with China to help with the transition to a greener economy. They believe that by creating strong connections and ensuring high standards, Hong Kong can play a crucial role in the global fight against climate change. But to really make an impact, they need to build a system that can track and manage the flow of green investments and make sure they're making a real difference.