China Launches Large-Scale Green Certificate Trading in Hong Kong
China has initiated its first large-scale trading of green certificates in Hong Kong, marking a significant step in renewable energy collaboration.
Guangzhou, October 15 (Daily Kiran) : On October 14, China conducted its first large-scale cross-border trading of green certificates in Guangzhou, marking a significant milestone. Approximately 100,000 green certificates were traded, equivalent to around 100 million kilowatt-hours of electricity generated from renewable sources. This event has enabled China’s Green Electricity Certificates (GEC) to enter the Hong Kong market on a large scale.
The trading established a direct link between the green certificate market in mainland China and Hong Kong’s international green finance sector. This move is seen as a crucial step toward integrating China’s green certificates into the international market and enhancing cooperation in the green energy sector within the Guangdong-Hong Kong-Macau Greater Bay Area.
For the first time, a “double agent” model was implemented in this trading process. Six new energy companies from the mainland negotiated with buyers in Hong Kong through the Shenzhen Green Electricity and Green Certificate Service Center, connecting to Hong Kong Exchange and Clearing Limited’s core climate platform. The cross-border trading of green certificates was then completed via the Guangzhou Electricity Trading Center.
Nine entities from Hong Kong participated in this purchase, representing sectors such as public services, banking and finance, real estate, property management, and education. This new framework has paved the way for collective trading, moving away from the previously used small and fragmented transaction methods for purchasing green certificates in Hong Kong and Macau.
The initiative is expected to make the cross-border use of mainland green certificates more organized, transparent, and traceable. It will also promote better resource utilization between both markets, enhance market connectivity, and facilitate mutual price recognition, creating new opportunities for shared growth.
On the same day, the Guangzhou Electricity Trading Center and the Hong Kong Exchange signed a comprehensive cooperation agreement.
