Two Sessions | Chan Fan and Chan Yik Fung Propose Initiatives to Advance Hong Kong’s Carbon Trading Development

During the ongoing National People’s Congress sessions in Beijing, Hong Kong deputies Chan Fan and Chan Yik Fung jointly submitted a proposal to promote the establishment of a carbon trading system in Hong Kong, aiming to support China’s green transition and carbon neutrality goals.
They noted that global carbon emissions exceed 40 billion tonnes annually, giving rise to a substantial carbon credit trading market where companies can buy and sell emission allowances. They believe Hong Kong has the potential to play a significant role in this market.
Chan Fan highlighted the price disparity between carbon credits in Mainland China and Europe, suggesting that if Mainland carbon credits could be traded in Europe through Hong Kong, it would present a lucrative opportunity. He estimated that trading 40 billion tonnes of carbon credits at HKD 100 per tonne could equate to a market worth HKD 4 trillion annually.
The proposal includes establishing a “Carbon Connect” mechanism to interlink carbon trading platforms in Shanghai, Beijing, and Hong Kong, allowing international investors to trade Mainland carbon assets via Hong Kong. They emphasized Hong Kong’s legal system and international standards as advantages in creating carbon accounting standards and regulatory frameworks.
Chan Yik Fung pointed out that differing requirements between developed and developing countries make Hong Kong an ideal place to harmonize cross-regional carbon certification standards, preventing certification processes from becoming obstacles.
Additionally, Chan Fan suggested allowing Hong Kong residents to apply for Mainland driving licenses without testing, and Chan Yik Fung advocated for developing Hong Kong into an intellectual property trading center.