The Government announced in 2017 that it 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; and further announced in 2018 that it would launch a Government Green Bond Programme (“GGBP”).
Subsequently, the Government announced in 2021 the plan to double the borrowing ceiling of the GGBP 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.
To further consolidate Hong Kong’s position as a green and sustainable finance hub, it was announced in the 2023-24 Budget that the scope of the GGBP would be further expanded to cover sustainable projects. Thereafter, it was set out in the 2024-25 Budget that the Government would set a borrowing ceiling of a total of HK$500 billion for the Infrastructure Bond Programme (“IBP”) and GGBP to allow more flexibility in quota re-allocation. The sums borrowed will be credited to the Capital Works Reserve Fund (“CWRF”) for investment in projects which are conducive to long-term development. With the expansion of the GGBP to cover sustainable projects, the GGBP was renamed as the Government Sustainable Bond Programme (“GSBP”).
To further increase the Government’s capacity to finance public works projects, the Government moved a Resolution under section 3 of the Loans Ordinance to seek Legislative Council’s approval to authorise the Government to borrow up to a maximum principal amount outstanding at any time of HK$900 billion or equivalent under the IBP and GSBP^. The Resolution (i.e. Cap. 61J) which supersedes the previous one (i.e. Cap. 61I) was passed by the Legislative Council on 13 May 2026 and subsequently published in the Government Gazette and took effect on 15 May 2026.
The sums borrowed under the GSBP are credited to the CWRF to provide funding for sustainable projects of the Government.
The Hong Kong Monetary Authority assists the Government in implementing bond issuance under the GSBP.
For details on the IBP, kindly refer to the webpage here.
^ The IBP and GSBP are independent of the Government Bond Programme. With different legal backing for the establishment of the Government Bond Programme, it has separate borrowing ceiling and proceeds management from the IB Programme and GSB Programme.