Recent HKEX’s Publication on Carbon Credits
In September 2025, Hong Kong Exchanges and Clearing Limited (HKEX) published the “Carbon Credits: A Buyer’s Guide”. With the Hong Kong’s carbon market platform, Core Climate, launched in 2022, the recent guide provides further explanation on the mechanisms behind carbon credits and how corporates leverage carbon credits for emission reductions.
Introduction of Carbon Credits
Background information of carbon credits and relevant purchase are explained, with explanation covering:
- Definition
- Lifecycle and Players
- Core Carbon Principles (CCPs)
- Underlying Reasons for the Purchase – Mandatory vs Voluntary
- Channels of the Purchase, e.g. Core Climate
Project Shortlisting
The process of creating a shortlist of carbon projects can be accompanied by the consideration of the company’s decarbonisation objective and sustainability values. To further identify suitable carbon projects, there are three main factors to be considered:
- Project Type
- Location
- Co-benefits
Credit Selection
With shortlisted projects, companies can kick off the next process – carbon credit selection. To purchase credits from quality carbon projects with managed risks, the process should involve three major considerations:
- Carbon Crediting Standard
- Vintage
- Project-based Due Diligence
Meanwhile, the pricing of carbon credits can be influenced by a pool of factors, including but not limited to market perception of credit quality, recognition by mandatory or industry requirements, and implementation factors. To enhance credibility and transparency, environmental claims should be made with the disclosure of relevant project information upon credit retirement.
The journey to net-zero is a strategic imperative and high-integrity carbon credits are a crucial tool for neutralizing unavoidable emissions. However, credible action begins with understanding your starting point. Before a company can set a target or participate in the carbon market, it must first establish a robust carbon baseline.
At GreenCo, we specialise in meticulous carbon accounting aligned with international standards, providing the foundational clarity you need. To move from ambition to action, contact us to define your baseline and build a credible pathway to net-zero.
**For the full Publication, please visit https://www.hkex.com.hk/-/media/HKEX-Market/Join-Our-Markets/Core-Climate/HKEX_Carbon-Credit-Buyers-Guide_English_2025.pdf
About GreenCo ESG Consulting
GreenCo is a professional ESG advisory firm accredited with ISO 9001 in the Provision of ESG / Sustainability Reporting, Sustainanbility and Climate Disclosures and GHG Accounting Advisory Services. Established in 2016, we were born to tackle ESG and climate risk management challenges. GreenCo has a professional team consists of talents with multiple backgrounds with
- PhD
- Practitioner Member of the Institute of Sustainability and Environmental Professionals (ISEP)
- CFA (the CFA Institute) and Certificate in ESG Investing
- EFFAS Certified ESG Analyst (CESGA)
- GRI Certified Sustainability Professional
- Certified Public Accountant (for assurance in accordance with ISAE 3000)
- Member of Global Association of Risk Professionals
- Master’s degree in envirnomental science
GreenCo has solid track record in ESG advisory for over 70 listed companies in Hong Kong, Mainland China, Singapore and Korea, covering all industries under the Hang Seng Industry Classification System.
