# Hong Kong: no carbon tax or ETS, only HKEX's voluntary Core Climate marketplace, settled in Hong Kong dollars and renminbi

_Last checked 2026-11-13 · https://asiacarbondesk.com/hong-kong-core-climate/_

Hong Kong has no compliance carbon price. Its carbon market is Core Climate, a voluntary international marketplace run by HKEX since 28 October 2022, where companies buy, settle and retire Verra and Gold Standard credits in Hong Kong dollars or renminbi. The Government counted more than 130 participants in March 2026; prices and transaction values are not disclosed.

## Key facts

- Compliance carbon price: None (no ETS or carbon tax confirmed)
- Registered participants: >130 (March 2026 · Government figure · 100 at end-2024)
- Projects on the platform: >60 (end-2025 · forestry, solar, wind, biomass)
- Credit standards: 2 (Verra VCS; Gold Standard VERs from 1 Aug 2024)
- Settlement currencies: 2 (Hong Kong dollar and renminbi)
- 2035 target: −50% (emissions vs 2005; neutrality before 2050)

## In brief

- Hong Kong has no emissions trading scheme or carbon tax; in 2018 the Government said it was not yet in a position to set up its own carbon trading market, and in March 2022 it backed a voluntary, on-exchange market instead.
- HKEX launched Core Climate on 28 October 2022. Companies register as participants, then buy, settle, hold and retire certified credits there, paying in Hong Kong dollars or renminbi. Verra VCS credits are offered from launch and Gold Standard VERs since 1 August 2024.
- The Government reported 100 registered participants at end-2024 and over 130 in March 2026, with over 60 projects on the platform at end-2025. It says prices and transaction values cannot be disclosed because they are commercially sensitive.
- Links with mainland China are at the pilot stage, under MOUs with Guangzhou, Shenzhen and Macao exchanges. Hong Kong's own target is to halve emissions from the 2005 level before 2035; 2024 emissions were 33.2 million tCO2e.

## Core Climate registered participants, Government figures

| Period | participants |
|---|---|
| End-2024 | 100 |
| Mar 2026 | 130 |

## Hong Kong total greenhouse gas emissions and the 2035 target (ktCO2e)

| Period | Total GHG emissions |
|---|---|
| 2005 | 42,800 |
| 2006 | 43,700 |
| 2007 | 44,200 |
| 2008 | 42,700 |
| 2009 | 43,300 |
| 2010 | 41,800 |
| 2011 | 43,400 |
| 2012 | 43,600 |
| 2013 | 44,800 |
| 2014 | 45,600 |
| 2015 | 42,100 |
| 2016 | 42,300 |
| 2017 | 41,500 |
| 2018 | 42,100 |
| 2019 | 41,300 |
| 2020 | 34,900 |
| 2021 | 36,300 |
| 2022 | 34,600 |
| 2023 | 34,500 |
| 2024 | 33,200 |

## From 'not ready' to a voluntary market

| Date | Event |
|---|---|
| 2018-12-12 | Government says Hong Kong is not yet in a position to set up its own carbon trading market. |
| 2021-10-08 | Climate Action Plan 2050: halve emissions from 2005 before 2035; carbon neutrality before 2050. |
| 2022-03 | Steering group backs an on-exchange voluntary carbon market; HKEX signs an MOU with China Emissions Exchange. |
| 2022-07 | HKEX forms the Hong Kong International Carbon Market Council. |
| 2022-10-28 | HKEX launches Core Climate, with Verra VCS credits. |
| 2023-10 | HKEX signs an MOU with Shenzhen Green Exchange. |
| 2024-08-01 | Gold Standard VERs become tradable alongside Verra VCS. |
| 2025 | HKMA and HKEX complete a tokenised carbon credit test under Project Ensemble. |
| 2025-09-23 | MOU with three Greater Bay Area carbon exchanges. |
| 2026-03 | Government reports over 130 registered participants. |
| 2035 | Target: emissions half the 2005 level. |
| 2050 | Target: carbon neutrality. |

## How a purchase works on Core Climate

| Step | What happens |
|---|---|
| Join | A company registers as a participant (over 130 by March 2026). |
| Choose credits | Pick from certified projects verified under Verra VCS or Gold Standard. |
| Trade or settle | Buy on the platform, or use it to settle a deal agreed bilaterally. |
| Pay in HKD or RMB | Settlement in Hong Kong dollars or renminbi. |
| Hold or retire | Credits are held in custody or retired against the buyer's own climate claims. |

## Carbon pricing in Hong Kong

| Item | Status |
|---|---|
| Emissions trading scheme | None. 2018: 'not yet in a position' to set up its own |
| Carbon tax | None confirmed in official texts |
| Carbon market policy | Voluntary carbon market on exchange (March 2022 assessment) |
| Core Climate | Voluntary international marketplace run by HKEX |
| 2035 target | Halve emissions from the 2005 level |
| Long-term target | Carbon neutrality before 2050 |
| 2024 emissions | 33.2 MtCO2e; 4.41 t per person; −27% from the 2014 peak |
| Main sources (2024) | Electricity 61%, transport 18%, waste 8% |

## Credits on Core Climate

| Item | Detail |
|---|---|
| Standards | Verra VCS since launch; Gold Standard VERs from 1 Aug 2024 |
| Unit | 1 credit = 1 tonne CO2 |
| Project types | Forestry, solar, wind, biomass in Asia, South America and Africa |
| Settlement currency | Hong Kong dollar and renminbi |
| Mainland links | MOU with Guangzhou, Shenzhen and Macao carbon exchanges (23 Sep 2025) |
| Cross-boundary settlement | Pilot to be completed within 2026 |
| Tokenised credits | Test completed in 2025 by HKMA and HKEX (Project Ensemble) |
| Prices | Not disclosed: wide price range, commercially sensitive |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Core Climate launch date | 28 October 2022 | [Hong Kong Exchanges and Clearing Limited (HKEX)](https://www.hkex.com.hk/News/News-Release/2022/221028news?sc_lang=en) | 2026-11-12 |
| Participants, end-2024 (Government) | 100 | [HKSAR Government, Secretary for Environment and Ecology](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) | 2026-11-12 |
| Projects on the platform, end-2025 | Over 60 carbon reduction projects | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Cumulative traded volume, as of March 2026 | Exceeded 1 million tonnes | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Registered participants, as of March 2026 | Over 130 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Disclosure of transaction values | Nominal volumes and transaction information not disclosed (commercially sensitive; very wide price range) | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Settlement currencies | 2 currencies: Hong Kong dollar (HKD) and Renminbi (RMB) | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Credit standard at launch | Verra Verified Carbon Standard (VCS); all projects verified against it (Nov 2022) | [HKEX](https://www.hkex.com.hk/News/News-Release/2022/2211242news?sc_lang=en) | 2026-11-12 |
| Gold Standard VERs added | GS-VERs tradable from 1 August 2024 | [HKEX](https://www.hkex.com.hk/News/News-Release/2024/240801news?sc_lang=en) | 2026-11-12 |
| Unit size of a GS-VER | 1 tonne of CO2 per credit | [HKEX](https://www.hkex.com.hk/News/News-Release/2024/240801news?sc_lang=en) | 2026-11-12 |
| Project types and regions | Forestry, solar, wind, biomass projects in Asia, South America and Africa | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Hong Kong International Carbon Market Council formed | July 2022 | [HKSAR Government, Secretary for Environment and Ecology](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) | 2026-11-12 |
| GBA exchanges MOU | Signed 23 Sep 2025 with 3 exchanges: Guangzhou Emissions Exchange, Shenzhen Green Exchange, Macao International Carbon Emission Exchange | [HKEX](https://www.hkex.com.hk/News/News-Release/2025/250923news?sc_lang=en) | 2026-11-12 |
| Cross-boundary settlement pilot target | Pilot to be completed within 2026 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| GEC pilot trading target | Pilot trading of GECs in Hong Kong in 2026 | [HKSAR Government](https://www.info.gov.hk/gia/general/202609/16/P2026091600281.htm) | 2026-11-12 |
| Tokenised carbon credit test (Project Ensemble) | Completed in 2025 by HKMA and HKEX | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202603/18/P2026031700424.htm) | 2026-11-12 |
| Co-operation countries named in 2026 Policy Address | 3: Brazil, Malaysia, Kazakhstan | [HKSAR Government](https://www.info.gov.hk/gia/general/202609/16/P2026091600281.htm) | 2026-11-12 |
| Compliance carbon trading market (2018 position) | Steering Committee on Climate Change: Hong Kong not yet in a position to set up its own carbon trading market | [HKSAR Government, Secretary for the Environment](https://www.info.gov.hk/gia/general/201812/12/P2018121200199.htm) | 2026-11-12 |
| Policy direction (March 2022 feasibility assessment) | Develop a centralised, on-exchange voluntary carbon market (2022 target, as worded in the official reply) | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202204/27/P2022042600529.htm) | 2026-11-12 |
| Government description of Core Climate (2026) | Voluntary international carbon marketplace run by HKEX | [HKSAR Government, Financial Secretary](https://www.info.gov.hk/gia/general/202603/26/P2026032600301p.htm) | 2026-11-12 |
| First carbon futures ETF listed on HKEX | 23 March 2022 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202204/27/P2022042600529.htm) | 2026-11-12 |
| 2035 interim target | Halve carbon emissions from the 2005 level before 2035 (-50%) | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| Carbon neutrality target | Before 2050 | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Climate spending planned (CAP2050) | About HK$240 billion over the next 15-20 years | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| Renewable energy share target in power mix | 7.5%-10% by 2035, 15% subsequently | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| Total GHG emissions 2024 | About 33.2 million tCO2e (-3.6% vs 2023) | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Per capita emissions 2024 | 4.41 tCO2e per person | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Largest emission source 2024 | Electricity generation 61%, transport 18%, waste 8% | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Change since 2014 peak (2024) | Total emissions down about 27% | [Environment and Ecology Bureau (EEB)](https://www.info.gov.hk/gia/general/202601/22/P2026012200196.htm) | 2026-11-12 |
| Total GHG emissions 2005 (baseline year) | 42,800 ktCO2e | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Total GHG emissions 2014 (peak) | 45,600 ktCO2e | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Annual GHG emissions table 2005-2024 | Total GHG emissions by year, ktCO2e (AR5 GWP) | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Implied 2035 emissions level | About 21,400 ktCO2e = 50% (f41) x 42,800 (f49) | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| 2024 emissions vs 2005 | About -22.4% = 33,200 (f51 table) / 42,800 (f49) - 1 | [Environment and Ecology Bureau, Carbon Neutrality and Sustainable Development website](https://cnsd.gov.hk/wp-content/uploads/2026/01/Data-Tables_2024_AR5_per-capita_intensity-r3.pdf) | 2026-11-12 |
| Climate Action Plan 2050 review | Review result expected in 2026 | [HKSAR Government, Secretary for Environment and Ecology](https://www.info.gov.hk/gia/general/202506/18/P2025061800243.htm) | 2026-11-12 |
| Climate Action Plan 2050 announced | 8 October 2021 | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |
| HKEX - Shenzhen Green Exchange MOU | October 2023 | [HKEX](https://www.hkex.com.hk/News/News-Release/2026/261014news?sc_lang=en) | 2026-11-12 |
| HKEX - China Emissions Exchange (Guangzhou) MOU | March 2022 | [HKSAR Government, Secretary for Financial Services and the Treasury](https://www.info.gov.hk/gia/general/202204/27/P2022042600529.htm) | 2026-11-12 |
| Earlier target (CAP2030+, 2017) | Carbon intensity -65% to -70% by 2030 vs 2005 (= total -26% to -36%) | [HKSAR Government, Environment Bureau](https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm) | 2026-11-12 |

## FAQ

**Does Hong Kong have a carbon tax or an emissions trading scheme?**

No. No official text confirms a carbon tax or ETS. In 2018 the Government said Hong Kong was not yet in a position to set up its own carbon trading market; its March 2022 assessment recommended a voluntary carbon market instead.

**What is Core Climate?**

A voluntary international carbon credit marketplace run by HKEX, launched on 28 October 2022. Companies buy, settle, hold and retire certified credits there, in Hong Kong dollars or renminbi.

**Are Core Climate prices or volumes published?**

No price or volume series is published. The Government says transaction values cannot be disclosed because prices vary widely and the information is commercially sensitive.

**How many companies take part?**

Over 130 registered participants as of March 2026, up from 100 at the end of 2024, according to the Government.

**Which credits can be traded?**

Credits verified under Verra's VCS, and Gold Standard VERs since 1 August 2024, from over 60 projects (end-2025) in forestry, solar, wind and biomass. Each credit is 1 tonne of CO2.

**Is Core Climate linked to mainland China's carbon markets?**

Pilots only so far. HKEX signed an MOU with three Greater Bay Area exchanges on 23 September 2025, and in October 2026 it began pilots in Shenzhen allowance settlement and green electricity certificate trading. The Government aims to complete the settlement pilot within 2026.

**What is Hong Kong's emissions target?**

Halve emissions from the 2005 level before 2035 and reach carbon neutrality before 2050. Emissions were 33.2 million tCO2e in 2024, about 27% below the 2014 peak.

## Not listed yet

- Prices and transaction values on Core Climate: the Government says they cannot be disclosed.
- Annual or monthly Core Climate volumes: not published.
- Core Climate fees and rulebook: behind the platform login.
- Official traded price or transaction value on Core Climate — Government reply (LCQ21, 18 Mar 2026) says nominal volumes and transaction information cannot be disclosed; no HKEX price series found.
- Compliance carbon price (ETS or carbon tax) in Hong Kong — No official statement found that Hong Kong has or has legislated an ETS or carbon tax; the 2018 Government position was that it was not yet in a position to set up its own carbon trading market.
- Annual or monthly Core Climate trading volume — HKEX publishes no annual/monthly Core Climate statistics in the releases and results reports read; only cumulative figures for Nov 2022 and Mar 2026.
- Core Climate fees and trading rules — The Core Climate rulebook/fee schedule is behind the platform login; not read.
- Results of the 2026 review of the Climate Action Plan 2050 — Review was expected in 2026; no published result found as of 12 Nov 2026.
- Exact participant count at end-2024 — Only the Government figure is shown: 100 by end-2024 (LCQ20, 2025). Counts published by the exchange are not republished here.