- Hong Kong has issued around HK$240 billion (US$31 billion) in government green bonds since 2019, making it one of Asia’s largest sovereign issuers.
- Proceeds are financing 116 projects across wastewater treatment, hospital expansions, low-carbon buildings, transport, and climate adaptation infrastructure.
- The Government has lifted its borrowing ceiling for sustainable bonds to HK$500 billion (US$64 billion), reinforcing its ambition to remain a global hub for green and transition finance.
A growing sovereign green bond market
The Hong Kong Special Administrative Region has released its Green Bond Report 2025, providing a detailed account of how HK$240 billion (US$31 billion) in sovereign green bonds have been allocated to climate and environmental projects. The program, launched in 2019 and expanded in 2024 to cover sustainable projects, has become one of the largest government-led green financing platforms in Asia.
The Government Sustainable Bond Programme (GSBP), overseen by the Financial Secretary and implemented with support from the Hong Kong Monetary Authority, has financed projects ranging from large-scale sewage treatment to renewable-powered hospitals and climate forecasting systems.
As of August 2025, funds have been directed into 116 projects across six categories: green buildings, energy efficiency, pollution prevention, water and wastewater management, waste recovery, and climate change adaptation.
Strategic financing for decarbonization
The report sets out Hong Kong’s alignment with China’s “dual carbon” targets—peaking emissions before 2030 and achieving neutrality by 2060—while committing the city to its own 2050 net-zero pathway. To meet these goals, the Government has earmarked HK$240 billion (US$31 billion) in public funds for climate mitigation and adaptation measures over the next 15 to 20 years.
Projects financed include:
- Cheung Sha Wan trunk sewage rehabilitation: A HK$ multi-billion scheme to secure wastewater pipelines serving 900,000 people, preventing leakage into Victoria Harbour.
- North District Hospital expansion: A 1,500-bed acute block designed with renewable energy, energy-efficient systems, and green building features targeting a “Gold” rating under Hong Kong’s BEAM Plus standard.
- Hong Kong Observatory supercomputer: A high-performance weather prediction system commissioned in 2024 to improve forecasts of extreme weather, vital for aviation and disaster preparedness.
Other funded initiatives include waste-to-energy facilities, district cooling systems at Kai Tak and Tung Chung, and a network of green government buildings.
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Global market engagement
Hong Kong has positioned itself as a leader in sovereign green finance innovation. The Government’s bond sales have included record-breaking transactions: Asia’s longest-tenor US dollar green bond (30 years), the world’s largest retail green bond issuance, and the first government-issued tokenised green bond.
The June 2025 offering raised HK$21 billion (US$2.7 billion) across US dollar, euro, and renminbi tranches, with subscription rates up to 12 times oversubscribed. Demand for the 20-year renminbi tranche was especially strong, reflecting mainland and regional investor appetite.
In total, 11 issuance rounds have taken place since 2019, with bonds listed on both the Hong Kong and London stock exchanges.
Building a sustainable finance hub
Beyond bond issuance, Hong Kong is advancing complementary policies to entrench its role as a green finance centre. Initiatives include:
- A Green and Sustainable Finance Grant Scheme, subsidising issuance costs and extended to cover transition bonds. By August 2025, it had supported over 600 instruments worth US$167 billion.
- The Hong Kong Taxonomy for Sustainable Finance, interoperable with Mainland China and EU frameworks, expanded in 2024 to cover manufacturing and ICT transition activities.
- Adoption of ISSB-aligned sustainability disclosure standards by 2028, with climate-related reporting already phased in for listed companies from 2025.
- A green fintech proof-of-concept scheme to integrate blockchain and digital innovation into sustainable finance.
Christopher Hui, Secretary for Financial Services and the Treasury, said the report reflects efforts to “accelerate innovative financial development, foster a conducive regulatory environment and build a cross-sector ecosystem by leveraging the city’s strengths in green and sustainable finance.”
Global relevance for investors and policymakers
For investors, Hong Kong’s green bond programme offers a deep, liquid sovereign benchmark in Asia’s fast-growing sustainable debt market. For policymakers, it demonstrates how sovereign issuers can use multi-currency, innovative structures—from retail bonds to tokenised offerings—to mobilise global capital at scale.
With the borrowing ceiling lifted to HK$500 billion (US$64 billion) across green and infrastructure bonds, Hong Kong now has one of the most ambitious sovereign sustainable finance agendas worldwide.
As climate pressures intensify across Asia, Hong Kong’s green bond report shows how capital markets can be channelled into infrastructure resilience and low-carbon transition—setting a precedent for other international financial centres.
Read the Green Bond Report 2025 here.
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