HKMA announces details on extending the Green and Sustainable Finance Grant Scheme and expanding subsidy scope to cover transition finance instruments

The Hong Kong Monetary Authority (HKMA) has announced the extension of the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as part of the 2024-25 Budget. Launched in May 2021, the GSF Grant Scheme provides subsidies for eligible green and sustainable debt issuance in Hong Kong. The scheme will be extended for three years until 2027 and will now cover transition bonds and loans, aiming to promote transition activities and financing as industries move towards decarbonization. The HKMA has updated the guideline on the GSF Grant Scheme, which will take effect on 10 May 2024, reaffirming Hong Kong’s commitment to supporting sustainable finance and addressing climate challenges. Hong Kong has established itself as a leading green finance center in Asia, facilitating a significant portion of the region’s international green and sustainable bonds. The GSF Grant Scheme has played a vital role in fostering the adoption of sustainable finance and promoting good market practices. The HKMA will continue to administer the scheme, keeping an eye on market developments and industry feedback, and making necessary adjustments to the eligibility criteria, grant amounts, and application process as needed. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240503-9/