Government Green Bond Programme

The Chief Executive announced in her 2017 Policy Address that the Government would take the lead in arranging the issuance of a green bond to demonstrate the Government’s support for sustainable development and determination to combat climate change, and to promote the development of green finance. The Financial Secretary further announced in the 2018-19 Budget that the Government will launch a Government Green Bond Programme (“GGBP”).

On 15 November 2018, the Legislative Council passed a Resolution under section 3 of the Loans Ordinance (Chapter 61 of the Laws of Hong Kong) authorising the HKSAR Government to borrow up to a maximum principal amount outstanding at any time of HK$100 billion or equivalent under the GGBP^.

The sums borrowed under the GGBP are credited to the Capital Works Reserve Fund to provide funding for green public works projects of the Government.

The Hong Kong Monetary Authority assists in implementing green bond issuance under the GGBP.

Green Bond Framework

As a core component of the Programme, the Green Bond Framework sets out how the Government intends to issue Green Bonds to fund projects that will improve the environment and facilitate the transition to a low carbon economy. Green Bonds issued under the Framework will be aligned with the Green Bond Principles 2018 of the International Capital Markets Association or as they may be subsequently amended.

A Second Party Opinion has been obtained for the Framework from Vigeo Eiris, an independent international provider of Environmental, Social and Governance (ESG) research and services.

The inaugural transaction under the Framework is a green bond which has received the Green Finance Certificate (Pre-issuance) from the Hong Kong Quality Assurance Agency.

HKQAA Certificate logo

^ The Government Green Bond Programme is a separate programme independent of the Government Bond Programme. With different legal backing, the two programmes have separate borrowing ceiling and proceeds management.