(PHOTO / VCG)

HONG KONG – The Hong Kong Special Administrative Region government has released the Green Bond Report 2022, which sets out the allocation of the proceeds raised from green bond issuances, including that of the inaugural retail green bond issued this year, and the expected environmental benefits of the projects financed.

Green bonds are an important tool to facilitate capital flows towards green projects, Financial Secretary Paul Chan Mo-po, Chairman of the Steering Committee on Bond Market Development in Hong Kong, said after release of the report on Wednesday.

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To enhance transparency, we have also been publishing Green Bond Reports annually to provide comprehensive information to investors on the allocation of proceeds and the positive environmental impact of their investment.

Paul Chan, Financial Secretary, HKSAR

So far, the government has issued government green bonds worth close to $10 billion, funding various green projects in the city and providing important benchmarks for potential issuers, said the finance chief.

The report puts forward three strategic directions and a host of detailed recommendations to further promote the bond market development in Hong Kong, according to a government press release.

The strategic directions are: leveraging the opportunities presented by the mainland market and new global trends, upgrading infrastructure to attract business and resources, and promoting social and financial inclusion and facilitating participation of retail investors.

“To enhance transparency, we have also been publishing Green Bond Reports annually to provide comprehensive information to investors on the allocation of proceeds and the positive environmental impact of their investment,” said Chan.

The government will continue to promote market development through various measures to consolidate the SAR’s position as a regional and international green and sustainable finance hub, he added.

Secretary for Financial Services and the Treasury Christopher Hui said the Green Bond Report 2022 is rich in content, adding that it helps the public understand the development of green and sustainable finance in Hong Kong, and encourages them to participate in building a green future for the city together.

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The proceeds raised by the government through issuances of green bonds have been fully allocated or earmarked to green projects, including GREEN@WAN CHAI, the Fire Services Department Pak Shing Kok Married Quarters, the Water Intelligent Network implementation and the district cooling system at the Kwu Tung North New Development Area.