【ESG News】Global Trends Biweekly Newsletter Issue 53 (2026.2.9-2026.3.1)

Hong Kong ESG trends

Hong Kong Green Finance Association (HKGFA) Welcomes and Supports the 2026‑27 Budget Speech

The 2026‑27 Budget Speech reaffirms the Government’s unwavering commitment to fostering an enabling regulatory environment and introducing strategic incentives to deepen cross‑sector collaboration, pivotal to scaling up green and transition finance in Hong Kong. Several of HKGFA’s member‑driven policy recommendations have been reflected in the Budget Speech. These include the proposal to explore public‑private partnerships through the establishment of a Hong Kong‑based Green Technology Projects Accelerator, the development of green transition planning guidance for banks to facilitate sectoral transition, and the promotion of financing initiatives to advance the creation of a Green Maritime Fuel Bunkering Centre.

Source: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/01/20260130-3/

Lianhe Green Insights

The 2026-27 Budget, centered on financial empowerment and technology-driven development, has formulated a multi-dimensional blueprint for green growth. From the launch of the Green Technology Accelerator and the continuous issuance of sustainable bonds to the establishment of a hydrogen certification system and the development of a green maritime fuel bunkering center, the policies accurately respond to market demands. This series of initiatives not only strengthens Hong Kong’s status as an international green finance center but also facilitates the achievement of carbon neutrality goals through standard alignment and cross-departmental collaboration. It injects strong momentum into green synergy in the Greater Bay Area and green project financing under the "Belt and Road" Initiative, demonstrating Hong Kong’s strategic commitment as a regional hub for climate solutions.

 

HKGFA Representative Spoke at the HKSAFC Annual Symposium 2026

Dr. Ma Jun, Chairman & President of Hong Kong Green Finance Association (HKGFA) and Capacity-building Alliance of Sustainable Investment (CASI), spoke at the Annual Symposium 2026 of Hong Kong Sustainable Aviation Fuel Coalition (HKSAFC). The Symposium was organised by the Business Environment Council.

During his sharing, Dr. Ma shared how sustainable finance can accelerate sustainable aviation fuel (SAF) in Hong Kong:

1.    Taxonomy and clear definition of SAF

2.    Utilise financial products

3.    Policy & incentives

Source: https://www.hkma.gov.hk/gb_chi/news-and-media/press-releases/2026/01/20260130-3/

Lianhe Green Insights

Dr. Ma Jun’s three proposed pathways precisely address the core pain points in the integration of aviation decarbonization and green finance. Against the backdrop of the rapid global growth in demand for SAF and the intensive rollout of international mandatory policies, this proposal provides a clear blueprint for Hong Kong to leverage its financial strengths and align with international standards. Bolstered by its locational advantages and financial innovation capabilities, Hong Kong is poised to become a financing and trading hub for the SAF industry in Asia through standard-setting and policy guidance, injecting pivotal impetus into the decarbonization of the regional aviation sector.

 

International ESG trends

Council Signs Off Simplification of Sustainability Reporting and Due Diligence Requirements to Boost EU Competitiveness

On 24 February, member states of the Council of the European Union voted to approve an agreement on the "Omnibus I" simplification package, which significantly streamlines corporate requirements for sustainability reporting and due diligence. This move marks the EU's formal adoption of these new rules, which will drastically reduce the number of enterprises subject to key sustainability legislation including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

Source: https://www.consilium.europa.eu/en/press/press-releases/2026/02/24/council-signs-off-simplification-of-sustainability-reporting-and-due-diligence-requirements-to-boost-eu-competitiveness/

Lianhe Green Insights

The Council of the European Union has approved the simplification of sustainability reporting requirements. By focusing resources on ultra-large enterprises with genuine capacity, it prevents small and medium-sized enterprises from expending their efforts on cumbersome compliance. This not only cuts administrative costs but also allows enterprises to travel light and channel their capital truly into green transition and technological upgrading. Rather than making all enterprises struggle with endless reporting, it is better to let leading enterprises take the lead as examples and drive the industrial chain forward. This targeted burden reduction not only upholds the bottom line of sustainable development but also preserves the global competitiveness of European enterprises.

 

First Carbon Credit Issued Under Article 6.4 of the Paris Agreement

On 26 February, the UN Climate Change Secretariat announced the historic first issuance of carbon credits under the international carbon market mechanism established pursuant to the Paris Agreement, marking the official shift of the world’s new-generation compliant carbon credit system from institutional design to practical operation.

The approved project is located in Myanmar and falls under the category of clean cooking promotion initiatives. By distributing high-efficiency and energy-saving stoves to replace traditional wood-burning stoves, the project reduces greenhouse gas emissions, mitigates household air pollution and eases pressure on local forest resources. Coordinated by an authorized Korean participant, the carbon emission allowances approved for use in the Republic of Korea may be transferred to Korean entities for compliance with the country’s Emissions Trading System, thus counting towards the Republic of Korea’s Nationally Determined Contributions (NDCs). The remaining allowances will be used by Myanmar for its own NDCs.

Source: https://unfccc.int/news/un-carbon-market-approves-first-ever-issuance-of-credits-under-the-paris-agreement

Lianhe Green Insights

The issuance of the first carbon credits under the UN climate change framework marks the official transition of Article 6.4 of the Paris Agreement from institutional design to practical operation, a pivotal turning point for the global carbon market as it shifts from institutional establishment to transaction promotion. As the supervisory body advances the development of methodologies and the transition of CDM projects in parallel, over 160 projects are already in the pipeline for conversion, laying a solid supply foundation for the market. More importantly, the cross-border transfer of emission reduction outcomes involving the Republic of Korea in this initiative means the substantive integration of NDC compliance and international carbon credit trading, officially launching the genuine operation of the global compliant carbon cycle.

 

ISO Releases New Climate Adaptation Standard

Recently, the International Organization for Standardization (ISO) launched ISO 14092:2026, Climate change adaptation — Requirements and guidelines for adaptation planning by local governments and communities.

It provides a structured, step-by-step framework to help organizations:

·         Define governance structures and responsibilities

·         Effectively engage stakeholders

·         Assess and prioritize climate risks

·         Design and implement adaptation actions

·         Monitor progress and refine plans over time

The standard supports the full adaptation planning cycle, from understanding climate risks to implementation and continuous improvement.

Source: https://www.iso.org/standard/14092

Lianhe Green Insights

The release of ISO 14092:2026 provides a critical operational playbook for climate action at the “last mile.” It translates global climate goals into tangible implementation at the local government and community level, where impacts are most direct. By offering a structured, end-to-end framework spanning risk assessment to continuous improvement, it effectively bridges the gap between macro policies and micro-level practices. The standard not only empowers local stakeholders to build climate resilience tailored to local contexts but also establishes a consistent benchmark for measuring progress, making decentralized adaptation efforts more systematic and comparable. It represents a major step toward a more scientific and standardized global approach to climate adaptation.

 

Mainland China ESG trends

NDRC and BMWi Sign Joint Statement on Continuing Intergovernmental Dialogue and Cooperation Mechanism on Climate Change and Green Transition

On 25 February 2026, witnessed by the premiers of China and Germany, Zheng Shanjie, Chairman of the National Development and Reform Commission (NDRC), and Stefan Rouenhoff, Parliamentary State Secretary to the Federal Ministry for Economic Affairs and Climate Action (BMWK) of Germany, signed the Joint Statement between the Government of the People’s Republic of China and the Government of the Federal Republic of Germany on the Continuation of the Dialogue and Cooperation Mechanism on Climate Change and Green Transition.

The two sides reaffirmed their commitment to advancing and improving cooperation under the mechanism, in particular policy exchanges and cooperation in energy, industry, energy efficiency, circular economy and other areas, to further implement the goals of the Paris Agreement.

Source: https://www.ndrc.gov.cn/fzggw/wld/zsj/zyhd/202602/t20260226_1403903.html

Lianhe Green Insights

The continuation of the China-Germany dialogue and cooperation mechanism on climate change and green transition represents another important achievement in bilateral practical cooperation. Since its establishment in 2023, the two sides have made remarkable progress in provincial-state cooperation, energy efficiency improvement, industrial decarbonization and other areas. Focusing on core sectors including energy and industry, this renewal advances the implementation of the Paris Agreement and offers a model of policy exchange and practice for global green transition. It demonstrates the responsibility of China and Germany as major economies and injects stability into a turbulent world.