【ESG News】Global Trends Biweekly Newsletter Issue 2 (2024.2.18-2024.3.1)

Hong Kong China ESG trends

The Financial Secretary of Hong Kong proposed to extend the Green and Sustainable Finance Grant Scheme to year 2027 during the 2024-25 Budget Speech

On February 28 2024, Paul Chan Mo-po, the Financial Secretary of Hong Kong just proposed to extend the the Green and Sustainable Finance Grant Scheme to year 2027 during the 2024-25 Budget Speech. "We propose to extend the scheme, which is due to expire in mid‑2024, to 2027, and expand the scope of subsidies to cover transition bonds and loans. This will encourage related industries in the region to make use of Hong Kong's transition financing platform as they move towards decarbonisation.", he said.

Source: Hong Kong Government (https://www.budget.gov.hk/2024/eng/budget13.html)

International ESG trends

Singapore to Introduce Mandatory Climate Reporting Beginning 2025

Singapore will implement mandatory climate-related reporting requirements for listed and large non-listed companies, with obligations for some to begin disclosing in line with the IFRS’ International Sustainability Standards Board (ISSB) standards starting as early as 2025.

Source: ESG Today (https://www.esgtoday.com/singapore-to-introduce-mandatory-climate-reporting-beginning-2025/)

EU Lawmakers Agree to Establish Carbon Removal Certification System

Lawmakers in the European Parliament and Council announced today that they have reached a provisional agreement on a new regulation establishing a certification framework for the quantification, monitoring and verification of carbon removals.

Source: ESG today (https://www.esgtoday.com/eu-lawmakers-agree-to-establish-carbon-removal-certification-system/)

Japan issued second transition bond

Japan will sell sovereign transition bonds for the second time. The finance ministry is planning to price about ¥800 billion ($5.3 billion) of five-year notes that fund efforts to reduce carbon emissions in industries at 12:35 p.m. So-called when-issued orders for the bonds though before the auction had a 0.355% yield that was barely lower than 0.356% for regular government notes maturing on the same day.

Source: Bloomberg (https://www.bloomberg.com/news/articles/2024-02-27/japan-s-second-transition-bond-may-see-tepid-demand-on-risk-of-rate-hike) 

Mainland China ESG trends

Shanghai Municipal Government aims to promoting the improvement of ESG capabilities of foreign-related enterprises

On the 26th, Deputy secretary of the Municipal Party Committee and Mayor Gong Zheng presided over the executive meeting of the Municipal government, requiring that in accordance with the deployment of the municipal Party Committee, accelerate the establishment of product carbon footprint management system and create a green and low-carbon supply chain; Strive to improve the environmental, social and governance (ESG) capabilities of foreign-related enterprises in the city; Continue to cultivate world-class arbitration institutions. Among them, the meeting agreed in principle to the three-year action Plan for Accelerating the improvement of Environmental, Social and governance (ESG) capabilities of foreign-related enterprises in the City (2024-2026) and pointed out that it is necessary to promote the improvement of ESG capabilities of foreign-related enterprises and build new advantages in opening up and cooperation with the outside world.

Source: Shanghai Government (https://www.shanghai.gov.cn/nw4411/20240227/c4d213ec8104466cabb5717cd9c7fd0d.html)

The Guidance Catalogue for Green and Low-carbon Transition Industries (2024 edition) was released 

The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Natural Resources and other departments recently issued the "Green Low-carbon Transition Industries Guidance Catalogue (2024 edition)" (hereinafter referred to as the " Catalogue "), which provides a reference for the industry to move towards green and low-carbon development. The relevant person in charge of the National Development and Reform Commission said that the catalogue has detailed the specific connotation and requirements of relevant industries, which is conducive to strengthening the orientation of industrial green development, promoting the formation of a joint support policy for all parties, and providing support for cultivating and strengthening new momentum for green development and accelerating the green transformation of development methods.

Source：Chinese Government (https://www.gov.cn/zhengce/202403/content_6935934.htm)

The Ministry of Ecology and Environment seeks to expand carbon market soon

China will strive to expand its carbon trading market as soon as possible, as both trade volume and prices in the program are increasing, Zhao Yingmin, vice-minister of ecology and environment, said on Monday.

The Ministry of Ecology and Environment has been forging ahead with preparatory work to include another seven major carbon emitting industries in the market, which currently only involves the power generation sector, he told a news conference organized by the State Council Information Office.

Source：Chinese Government (https://english.www.gov.cn/news/202402/27/content_WS65dd450ac6d0868f4e8e4645.html)

Sustainable Finance Certification Completed by Lianhe Green