75 6 Financing the Climate Transition 1. HKMA performs central banking functions in Hong Kong and regulates banks, SFC regulates Hong Kong’s securities and futures markets, and HKEX is the stock exchange and determines the listing of companies. 2. The 2022-23 Budget earmarked HK$200 million for a pilot training scheme to provide subsidies to eligible persons to help build up the local green and sustainable finance talent pool. On 13 December 2022, the government announced the three-year Pilot Green and Sustainable Finance Capacity Building Support Scheme for Hong Kong residents who are market practitioners and prospective practitioners of green and sustainable finance. The subsidy covers 80%-100% of the relevant fees subject to a ceiling of HK$10,000. The scheme is administered by the Centre for Green and Sustainable Finance (CGSF), a public-private collaboration platform launched under the Green and Sustainable Finance Cross-Agency Steering Group, see also Chapter 4 for background. 3. For internship scheme, see https://www.hkma.gov.hk/eng/key-functions/ international-financial-centre/green-and-sustainable-finance/gsf-internshipopportunities/. 4. For details, see https://www.hkma.gov.hk/media/eng/doc/key-information/ guidelines-and-circular/2022/20221209e3a1.pdf. 5. See https://www.hkma.gov.hk/eng/news-and-media/pressreleases/2022/06/20220621-5/. 6. Ibid. 7. Green Bond Programme, see https://www.hkgb.gov.hk/en/greenbond/ greenbondintroduction.html. 8. For Shenzhen and Hainan’s sustainability bonds, see https://www.info.gov.hk/ gia/general/202210/24/P2022102400500.htm. 9. For details of HKMA’s 2021 stress test, see https://www.hkma.gov.hk/media/ eng/publication-and-research/quarterly-bulletin/qb202203/fa2.pdf. 10. For details on SFC’s policies, see https://www.sfc.hk/-/media/EN/files/COM/ Reports-and-surveys/SFC-Agenda-for-Green-and-Sustainable-Finance_en.pdf. 11. For background on ISSB, see https://www.ifrs.org/groups/internationalsustainability-standards-board/. 12. HKEX joined the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Financial Service Providers Alliance (NZFSPA) in 2021 as part of its ongoing commitment to the long-term sustainable development of global financial markets to meet the goals of the Paris Agreement. 13. See https://www.hkbea.com/html/en/index.html. 14. Power Assets Holdings Limited is a global investor in energy and utility-related businesses with investments in electricity generation, transmission and distribution; renewable energy; energy from waste; gas distribution and oil transmission, see https://www.powerassets.com/en/about-us. 15. For details see https://www.hkstp.org/. 16. A hurdle rate is the minimum rate of return required on a project or investment. Hurdle rates give companies insight into whether they should pursue a specific project. 17. SBTi stands for Science Based Targets Initiatives, and it guides organizations how much and how quickly they need to reduce their GHG to help prevent the worst effect of climate change, see https://sciencebasedtargets.org/. 18. See https://www.dunwellgroup.com/. 19. For details, see http://www.olympuscap.com/en/about-us/. 20. For the report, see https://hkust.edu.hk/news/teaching-and-learning/hkuststudy-outlines-blueprint-green-and-sustainable-finance-talent. 21. For details of the Kong Ha Wai project, see https://sustainability.hld.com/en/ highlights-achievements/stories/transitional-housing. 22. For details, see https://architecture2030.org/why-the-buildingsector/#:~:text=The%20built%20environment%20generates%2040,for%20 an%20additional%2013%25%20annually. 23. For details, see https://mic.cic.hk/en/AboutMiC. 24. For details on PAG, see https://www.pag.com/en/. 25. For details, see https://www.imo.org/en/MediaCentre/PressBriefings/pages/ DecadeOfGHGAction.aspx. 26. For details, see https://freeelectrons.org/. 27. See https://www.miotech.com/en-US. 28. See https://ww.bis.org/. 29. See https://www.bis.org/press/p211104.htm. 30. For details, see https://asiacarboninstitute.org/. 31. For details, see https://www.hkgreenfinance.org/association-overview/. 32. VERRA and The Gold Standard are two well-known organizations that set the standard for climate interventions to quantity, certify and maximise their impacts.