Green and Sustainable Finance Grant Scheme

Objective:

• To subsidize costs associated with eligible green and sustainable bond and loan issuances in Hong Kong.
• To encourage industries in the region to utilize Hong Kong’s transition financing platform for decarbonization efforts.
• Supports the development of Hong Kong as a green and sustainable finance hub.

Target Beneficiaries:

• Issuers of green and sustainable bonds and loans in Hong Kong.
• Expanded to include transition bonds and loans as of the 2024 extension.

Program Duration and Administration:

• Launched in May 2021.
• Extended by the Financial Secretary in the 2024-25 Budget to continue until 2027.
• Administered by the Hong Kong Monetary Authority (HKMA).

Key Features:

• Provides subsidies to cover issuance costs of eligible green, sustainable, and transition bonds and loans.
• Updated guidelines effective from 10 May 2024, with flexibility for HKMA to adjust eligibility criteria, expenses, grant amounts, and application processes based on market developments and feedback.
• Recognized external reviewers are involved in the assessment process.
• The scheme aims to support the transition to a low-carbon economy by facilitating financing for environmentally sustainable projects.

Application Process:

• Applicants must submit grant applications to HKMA.
• Applications for bonds and loans issued before 10 May 2024 follow previous guidelines.
• Detailed application procedures and eligibility criteria are outlined in the updated guideline document provided by HKMA.

This scheme is part of Hong Kong’s broader strategy to promote green finance and sustainable development through financial incentives and market facilitation. It complements other initiatives like the Digital Bond Grant Scheme and Qualifying Debt Instrument Scheme to enhance Hong Kong’s bond market competitiveness and sustainability focus.