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 (“GGB Programme”)^.
On 15 November 2018, the Legislative Council passed a Resolution (i.e. Cap 61F) 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 GGB Programme^.
Subsequently, the Financial Secretary announced in the 2021-22 Budget the plan to double the borrowing ceiling of the GGB Programme to HK$200 billion to allow for more room for piloting the issuance of green bonds that involve more types of currencies, project types and issuance channels, thereby further enriching the green finance ecosystem in Hong Kong.
Pursuant to the passage of a Resolution (i.e. Cap 61H) under section 3 of the Loans Ordinance by the Legislative Council on 21 July 2021, the HKSAR Government is authorised to borrow up to a maximum principal amount outstanding at any time of HK$200 billion or equivalent under the GGB Programme^. The Resolution was published in the Government Gazette and took effect on 23 July 2021, replacing the previous resolution (i.e. Cap 61F).
The sums borrowed under the GGB Programme are credited to the Capital Works Reserve Fund to provide funding for green projects of the Government.
The Hong Kong Monetary Authority assists in implementing green bond issuance under the GGB Programme.
^ 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.