Hong Kong eyes $100b fund for green financing

The fund will be used to implement the Government Green Bond Programme.

A resolution is set to be tabled at the Legislative Council authorising the government to borrow sums not exceeding $100b to implement the Government Green Bond Programme.

The total raised sum under the programme will be credited to the Capital Works Reserve Fund for funding public works projects with environmental benefits. The borrowing ceiling is also proposed to be set at $100b in order the promote the sustainable development of green finance in the city.

"The Programme will help promote the development of green finance in Hong Kong by encouraging issuers to arrange financing for their green projects through our capital markets,” said secretary for financial services and the treasury James Lau.

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"Global investments in environmental projects grew rapidly in recent years. I have every confidence that the financial services industry will seize the opportunities in green financing, and thus help consolidate Hong Kong's status as an international financial centre and develop Hong Kong into a regional green finance hub," he added. 

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Lau adds that he is targeting the inaugural government green bond issuance within the financial year. The government will move the resolution in the Legislative Council on June 27.