CEO of Vision Carbon Limited (右) 荣获第三届粤港澳大湾区杰出青年企业家

CEO of Vision Carbon Limited (右) 荣获第三届粤港澳大湾区杰出青年企业家


CEO of Vision Carbon Limited (右) 荣获第三届粤港澳大湾区杰出青年企业家


The first year of China’s national carbon market, reviewed


Hong Kong’s Exchange Launches Global Carbon Market with HSBC, ANZ, and Tencent

London Stock Exchange sets listing rules for carbon cutters


HKEX Launches Hong Kong International Carbon Market Council, Unveils Carbon Market Plans

China’s Carbon Markets – A Key Tool For Achieve Net Zero


ESG Investing with Carbon Credits – What Investors Need To Know

Hong Kong building a Greater China Carbon Market Gateway

Carbon markets: how to realize climate and ESG goals


Why should the levels of carbon and greenhouse gases in the atmosphere be reduced?

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Scientists at the IPCC have shown that increased levels of GHG in the atmosphere are warming the planet. This creates extreme weather changes around the world. Currently, burning fossil fuels - coal, oil and gas – is the main driver of increased GHG levels.
Under the banner of the UN and Paris Agreement, the world's countries have come together to declare that urgent action must be taken to lower emissions if we are to maintain a habitable planet that can support the world's population.
The latest research emphasises that urgent action must be taken by everyone in order to safeguard some of the most vulnerable ecosystems and communities on the planet.

What are carbon credits and how do they work?

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A carbon credit is a certificate representing one metric ton of carbon dioxide equivalent that is either prevented from being emitted into the atmosphere (emissions avoidance/reduction) or removed from the atmosphere as the result of a carbon-reduction project. 

For a carbon-reduction project to generate carbon credits, it needs to demonstrate that the achieved emission reductions or carbon dioxide removals are real, measurable, permanent, additional, independently verified, and unique (see sidebar, “Criteria for carbon credits”). 

If a project meets these criteria—as specified by independent standards such as Gold Standard and Verified Carbon Standard (VCS)—credits can be issued. The impact of a carbon credit can only be claimed—that is, counted toward a climate commitment—once the credit has been retired (canceled in a registry), after which it can no longer be sold.

Market Demand and Drivers in Carbon Market

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Investment demand in carbon credits as an asset class is expected to grow.
Globally, market interest in VCMs has grown significantly, driven by the
threat of an EU carbon tax on imported goods, corporate social
responsibility, and the surge in the number of companies and countries
setting carbon neutrality goals. Over 200 companies have committed to The
Climate Pledge as of March 2022, which involves implementing decarbonisation
strategies and neutralising any remaining emissions with carbon credits.7
Furthermore, at least one fifth (21%) of the world’s 2,000 largest public
companies whose sales revenue together accounted for US$14 trillion and 220
global asset managers with US$57 trillion in assets under management have
committed to meet net-zero targets,8 and will drive demand for carbon credits to
neutralise unabated emissions. Other markets are also taking steps to become
leading carbon credit trading hubs.

HKEX’s Net-Zero Guide and enhanced ESG reporting requirements are also
expected to drive HKEX-listed companies, including A/H share companies, to
decarbonise. These will likely boost demand for carbon credits to neutralise
unabated emissions. 

On the compliance market front, momentum to strengthen existing ETSs and foster
global cooperation on emission reductions will continue to be driven by the
Mainland’s “Dual Carbon” goals 9
 and outcomes from the 26th United Nations
Climate Change Conference (COP26). Under the official policy document
endorsed by the State Council on Providing Financial Support for the Development
of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) (the Opinion)10 and
major policies from the People’s Government of Guangdong Province, there is a
need to build a GBA platform for emission rights trading and financial
services, and to enable further participation from qualified foreign investors.

What makes a good climate action project?

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High-quality carbon credits adhere to a strict set of standards. You can check this by ensuring the projects you invest in are registered with a third-party internationally-recognised verification standard, such as the Gold Standard, Verra's Verified Carbon Standard (VCS), Social Carbon and Climate, Community and Biodiversity Standards (CCBS), or standards verified by the UNFCCC.

These standards also highlight additional benefits beyond carbon – all South Pole projects contribute to at least 3 of the UN's Sustainable Development Goals. This could be improving health, creating better education opportunities, improving wildlife conservation or even building sustainable communities.

How do I know that the emission reductions are actually happening?

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The  verification standards all Vision Carbon-related projects adhere to ensure that the project is real, verified, permanent and additional.

For transparency, carbon credits are assigned serial numbers and are issued, transferred and permanently retired in publicly accessible emission registries.