HKMA Extends and Expands Its Green and Sustainable Finance Grant Scheme

The Hong Kong Monetary Authority (HKMA) has released the details on the extension of the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2024-25 Budget.

Launched in May 2021, the GSF Grant Scheme provides subsidy for eligible green and sustainable debt issuance in Hong Kong. 

Hong Kong’s Financial Secretary Paul Chan proposed in the 2024-25 Budget to extend the GSF Grant Scheme by three years to 2027, and expand the scope of subsidies to cover transition bonds and loans with a view to encouraging relevant industries in the region to make use of Hong Kong’s transition financing platform as they move towards decarbonisation.

Following industry consultation, the HKMA has updated the guideline on the GSF Grant Scheme, which will be effective upon the extension of the scheme on 10 May 2024.  

Commenting on the move Eddie Yue, Chief Executive of the HKMA, said: “Hong Kong is a leading green finance centre in Asia, intermediating more than one-third of the region’s international green and sustainable bonds in recent years.”

“The GSF Grant Scheme has helped foster the adoption of sustainable finance, enrich the local ecosystem, and promote good market practice.  The extension of the scheme, with an expanded scope to cover transition finance instruments, reaffirms Hong Kong’s commitment to supporting the region’s increasing efforts to tackle climate challenge through transition activities and financing.”

The HKMA said it will continue to administer the GSF Grant Scheme, and keep in view market developments and industry feedback. It added that the design of the GSF Grant Scheme, such as eligibility criteria, eligible expenses, grant amounts and application process, may be adjusted from time to time as needed.