By Zhuohui Huang, Daiyang Zhang, Xiaozhen Li, Xiaoqian Jiang, Ying Cui, Yonghong Liu, Xuelan Zeng, Lawrence Iu, Bo Yu, Ling Miao, Xiaoling Hu, Karina Chow, Lauren Chan, Weichi Li, and Jiajun He
27 April 2023

This report aims to connect decarbonization solutions with necessary finance required to accelerate the net-zero transition in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). It applies a top-down approach to predict macro pathways for the whole GBA, then applied bottom-up approach to analyse specific decarbonisation pathways and solutions for key energy consuming sectors — manufacturing industries, road transport, and buildings, to highlight actions most needed to achieve the 30-60 goals – China’s national goal of achieving peak carbon emissions by 2030 and carbon neutrality by 2060 – or even earlier. Based on the above decarbonisation pathways, this report estimated how much investment will be needed and how to solve the challenges faced to ensure finance to help accelerate businesses to transition.

 

Highlights include:

• The GBA is expected to lead by example in advancing its carbon emission peaking and carbon neutrality as well as creating a regional benchmark for green and low-carbon development.
• Clean electricity will contribute to the largest emission reduction in the long-term for all energy consumption sectors – manufacturing industries, road transport and buildings. In the mid-term, energy efficiency improvement and cleaner energies in manufacturing and buildings, and mode shift in transport will be the key to decarbonisation.
• It is estimated that the GBA needs appr. US$1.84 trillion to achieve carbon neutrality by 2060, which equals to around 1% of cumulative GDP during 2020-2060. The analysis also estimated the US$200-700 billion will be needed for road transport, and US$150-300 billion for the building sector.
• The report recommends financial practices to accelerate transition: establishing cross-regional agency coordination mechanism in the GBA; facilitating interoperability of transition finance taxonomies and information disclosure standards in Mainland China and Hong Kong as well as internationally; encouraging financial institutes and enterprises to set net-zero targets; facilitating development of regional carbon markets; developing transition-related financial toolbox to scale-up financing; and developing sector-specific financial solutions for key sectors.

 

This publication is a joint effort of the World Resources Institute (WRI), Civic Exchange, the Guangdong Hong Kong Macau Greater Bay Area Green Finance Association (GBA-GFA), Hong Kong Green Finance Association (HKGFA), Central University of Finance and Economics, Guangdong University of Technology, Sun Yat-sen University, and China Quality Certification Center Guangzhou Branch.

 

Media coverage

• 27 Apr 2023 — SCMP 南華早報: Green finance: Greater Bay Area pilot for climate-mitigation projects to meet international standards, draw global investors
• 27 Apr 2023 — Guangzhou Daily 廣州日報: 《粵港澳大灣區深度減排路徑和金融支持轉型機遇》報告發布 大灣區2030年可如期碳達峰
• 27 Apr 2023 — BusinessFocus: 粵港澳大灣區綠色金融聯盟主題會議在香港成功召開
• 27 Apr 2023 — HK01 香港01: 碳中和｜渣打料大灣區要實現碳中和目標　需額外投放1.84萬億美元
• 27 Apr 2023 — HKCD 香港商報: 渣打：大灣區需額外投放14萬億以達碳中和目標
• 27 Apr 2023 — HKEJ 信報: 報告:大灣區需逾14萬億投資以達碳中和目標
• 27 Apr 2023 — HKET 香港經濟日報: 【可持續發展】渣打與世界資源研究所：大灣區需額外1.84萬億美元投資　才能實現碳中和
• 27 Apr 2023 — On.CC 東網:報告：大灣區實現「碳中和」　料需投資14萬億
• 27 Apr 2023 — Ta Kung Pao 大公報: 助力計劃/灣區轉型碳中和 未來需投入14萬億元
• 27 Apr 2023 — Wenweipo 文匯網: 渣打：灣區綠色發展潛力巨
• 28 Apr 2023 — Southern Metropolis Daily 南方都市報: 大灣區碳中和迎投資良機？行業報告：需投資1.84萬億美元