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【ESG News】Global Trends Biweekly Newsletter Issue 33 (2025.5.5-2025.5.18)
category：News and EventsRelease time：2025-05-19
Hong Kong China ESG trends
HKMA launches 2025 Green Fintech Competition
The Hong Kong Monetary Authority (HKMA) announced today (9 May) the launch of the 2025 Green Fintech Competition, co-hosted with the Hong Kong Institute of Bankers, and supported by the Institute of Sustainability and Technology, the Hong Kong Cyberport Management Company Limited, the Hong Kong Science and Technology Parks Corporation, and Invest Hong Kong.
Building on the success of the inaugural event in 2023 and reflecting latest market developments, the Competition focuses on five themes that highlight the opportunities for the banking sector and wider financial industry to leverage the power of green fintech:
1. Sustainable supply chain and small and medium-sized enterprises;
2. Accelerating climate risk modelling and analytics;
3. Carbon market analytics and technology;
4. Sustainable investing; and
5. Sustainable banking and financing products.
The Competition is an important part of the HKMA’s ongoing efforts to foster collaboration between the financial and technology sectors, build capacity for harnessing green fintech, and attract green fintech firms to expand their presence in Hong Kong.
Source: Hong Kong Monetary Authority - HKMA launches 2025 Green Fintech Competition
Lianhe Green Insights
Lianhe Green believes that the five cutting-edge themes focused on by this competition provide a platform for global fintech companies to showcase their innovative solutions. This will not only help promote the development of green financial technology in Hong Kong and attract more related businesses to expand their operations in the region, but also enhance Hong Kong's competitiveness in the global green finance field through collaboration with the financial and technological communities, contributing to the achievement of sustainable development goals.
HKSAR Government launches public consultation on updating Hong Kong Biodiversity Strategy and Action Plan
The Government is committed to conserving Hong Kong’s natural heritage, safeguarding biodiversity and achieving sustainable development. To complement the country’s implementation of the United Nations’ Convention on Biological Diversity, the Government launched the first phase of the BSAP in 2016, proposing a total of 67 specific measures in four main areas.
To update the strategic areas and actions for the next phase of the BSAP, the Government launched a public consultation today to gather views from various sectors of the community. Taking into account the latest global and national biodiversity initiatives, including the Kunming-Montreal Global Biodiversity Framework and the China National Biodiversity Conservation Strategy and Action Plan (2023-2030), local circumstances and conditions, and views received during the consultation period, the Government will complete updating the BSAP later this year to step up the work on biodiversity conservation and sustainable development, and to support the latest global and national initiatives.
Lianhe Green Insights
The HKSAR has initiated a public consultation on updating the “Hong Kong Biodiversity Strategy and Action Plan,” which is a strong reflection of its commitment to biodiversity conservation. By widely soliciting public opinion, the government will better balance development needs with the protection of biodiversity, promote sustainable development in Hong Kong, and contribute to global efforts in biodiversity conservation.
International ESG trends
IAASB Announces Withdrawal of ISAE 3410 for Assurance Engagements on Greenhouse Gas Statements
The International Auditing and Assurance Standards Boards (IAASB) has approved the withdrawal of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements.
This decision follows the approval and certification in 2024 of the International Standard on Sustainability Assurance (ISSA)TM 5000, General Requirements for Sustainability Assurance Engagements. ISSA 5000 addresses assurance of all types of sustainability information, including greenhouse gas emissions, regardless of how that information is presented. It is effective for assurance engagements on sustainability information reported for periods beginning on or after December 15, 2026, or as at a specific date on or after December 15, 2026.
Consequently, the withdrawal of ISAE 3410 will take effect from the effective date of ISSA 5000.
Lianhe Green Insights
ISSA 5000 states that the standard is applicable to professionals who have been granted appropriate authority by professional, legal, or regulatory bodies, especially when verifying technically complex environmental indicators such as greenhouse gas emissions and energy efficiency. Through interdisciplinary collaboration, ISSA 5000 lays the foundation for the broad application of this standard, which not only helps to enhance the professionalism of sustainability information but also strengthens its credibility on a global scale.
New Verra Methodology Supports Coal Phase-Out and Just Energy Transition
May 6, 2025, Verra has launched a cutting-edge methodology that enables the early retirement of coal-fired power plants and supports their replacement with new renewable energy. This paves the way for the clean generation of high-integrity transition credits, while ensuring that this transition is just, delivering social and economic support to affected workers and communities.
Verified Carbon Standard (VCS) methodology VM0052 Accelerated Retirement of Coal-Fired Power Plants Using a Just Transition quantifies the climate benefits of early coal retirement by comparing actual emissions to what a plant would have emitted over its expected lifetime. To ensure emission reductions, projects must pair the retired coal capacity with new renewable energy (i.e., energy newly added to the grid because of the coal plant’s early retirement, and that is not existing or already operational).
Developed by the Coal to Clean Credit Initiative (CCCI), supported by The Rockefeller Foundation, the methodology represents a major milestone in Verra’s mission to drive transformative, scalable climate solutions and mobilize carbon finance at scale.
Source: https://verra.org/new-verra-methodology-supports-coal-phase-out-and-just-energy-transition/
Lianhe Green Insights
ISSA 5000 states that the standard is applicable to professionals who have been granted appropriate authority by professional, legal, or regulatory bodies, especially when verifying technically complex environmental indicators such as greenhouse gas emissions and energy efficiency. Through interdisciplinary collaboration, ISSA 5000 lays the foundation for the broad application of this standard, which not only helps to enhance the professionalism of sustainability information but also strengthens its credibility on a global scale.
ESMA Releases Draft Rules to Regulate ESG Ratings Providers Under New EU Regulation
The ESMA has published a draft Regulatory Technical Standard (RTS) that sets stringent new requirements for ESG rating agencies operating within the European Union. The regulation calls for the authorization and supervision of ESG rating agencies, with core elements including minimum information requirements for the authorization of ESG rating agencies; safeguards to prevent conflicts of interest; and the public disclosure of rating models, methodologies, and assumptions, among others.
Lianhe Green Insights
ESMA has issued a regulatory draft aimed at rating agencies to address investors’ long-standing concerns about the opacity and inconsistency of ESG assessments, enhancing the credibility of ESG ratings and market order. This marks a new phase of standardization, transparency, and strictness in the EU’s regulation of the ESG rating industry. In the long term, the regulation of ESG rating agencies will continue to be strengthened, guiding rating agencies to return to their essential role as objective third parties under rules that are more transparent, disinterested, and professional, promoting the healthy development of the ESG ecosystem.
Mainland China ESG trends
Central Committee of the Communist Party of China and the State Council Issue “Regulations on Ecological Environment Protection Inspection Work”
Recently, the Central Committee of the Communist Party of China and the State Council issued the Regulations on the Work of Ecological Environmental Protection Inspectors (hereinafter referred to as ‘the Regulations’), and issued a circular requiring all regions and departments to follow them seriously.
The Circular points out that the Regulations, guided by Xi Jinping's Thought on Socialism with Chinese Characteristics in the New Era, comprehensively implement Xi Jinping's Thought on Ecological Civilisation, summarise the theoretical and practical experience of ecological environmental protection inspections in the new era, and further improve the institutional mechanism of ecological environmental protection inspections, which is of great significance in adhering to and strengthening the Party's overall leadership of ecological civilisation construction and ecological environmental protection, and in-depthly advancing ecological environmental protection inspections. comprehensively promote the construction of a beautiful China, is of great significance.
Source: https://www.gov.cn/zhengce/202505/content_7023427.htm
Lianhe Green Insights
The Regulations on Ecological Environment Protection Inspection Work clarify the system of environmental inspection and protection, establish a leading group of central ecological environment protection inspectors and specify their duties, targets for supervision, content and modus operandi, as well as requirements for the rectification and application of the results of the inspections. The issuance of these regulations will effectively improve the implementation of the Party Central Committee's decision-making and deployment of ecological civilisation.
China Development Bank Disburses Over 250 Billion Yuan in Green Loans in the First Four Months
Since the beginning of this year, the China Development Bank (CDB) has been leveraging its institutional role and making good use of policies such as carbon emission reduction support tools to provide stable medium and long-term funding for green development. From January to April, it has extended green loans exceeding 25 billion yuan, focusing on supporting green infrastructure, clean energy, ecological conservation, and pollution prevention and control.
While increasing credit support, the CDB is also actively exploring innovative green financial products and services to continuously improve the quality and efficiency of comprehensive financial services. Recently, the Gansu branch of the CDB issued the first loan linked to sustainable development to support the construction of 78,700 mu (approximately 5,246 hectares) of high-standard farmland in Gaozhou County, Jiuquan City. This loan links the water-saving rate of the farmland to preferential loan interest rates, promoting the development of water-saving irrigation. At the same time, the CDB continues to innovate green financial bond products, guiding and encouraging social funds to jointly serve green development.
Source: https://www.gov.cn/yaowen/liebiao/202505/content_7023761.htm
Lianhe Green Insights
The CDB has taken active steps in the field of green finance, extending over 25 billion yuan in green loans from January to April to support green development across various sectors. It has innovated products such as loans linked to sustainable development, guiding social capital to aid in the green transition. Its measures have set a benchmark for practitioners, promoting the greater role of green finance in supporting low-carbon development and ecological conservation, and contributing to the construction of a beautiful China.
RE100 Initiative Reps Back Alignment of China’s GEC System with Global Standards
On May 8, 2025, at the second Asia Action Summit hosted by the Climate Group, the organization officially announced that RE100 fully recognizes China's Green Electricity Certificates (GECs). In a joint statement with the China Electric Power Planning and Engineering Institute, both parties unanimously acknowledged the significant role of China's GECs in helping enterprises achieve their 100% renewable energy electricity goals. On-site, the two parties signed a memorandum of understanding to deepen their cooperation, expressing their shared vision to promote green electricity consumption through the use of China's green certificates. This is aimed at jointly advancing the internationalization process of China's GECs and accelerating the transition to green electricity consumption by businesses. The two sides will deepen their collaboration, focusing on promoting the application and promotion of green electricity consumption and international experience exchange, to help China's renewable energy development reach new heights.
Lianhe Green Insights
China’s support for the RE100 certificate and the opening up of its energy market indicate that the country is accelerating the development of renewable energy and attracting more businesses to participate in the green transition through market mechanisms. This move not only provides support for global companies to achieve sustainable development goals in China but also further consolidates China's leadership in the global energy transition. It will encourage more multinational and local companies to adopt green energy, thereby promoting the development of a low-carbon economy.
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