【ESG News】Global Trends Biweekly Newsletter Issue 56 (2026.3.30-2026.4.13)

​

Hong Kong ESG trends

HKMA Updated Guideline on the GSF Grant Scheme

The Hong Kong Monetary Authority has updated the Guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme), which will take effect from 24 April 2026.  These updates reflect the latest market developments and are based on feedback from industry engagement.

These refinements aim to (i) incentivise larger-scale bond issuance in Hong Kong, (ii) further promote the competitiveness of Hong Kong’s GSF ecosystem, and (iii) enhance support for new entrants to the GSF market and emerging areas, such as transition finance.

Source: https://www.hkma.gov.hk/media/eng/doc/key-functions/ifc/bond-market-development/GSFGS_Guideline_(Effective_from_20260424).pdf

Lianhe Green Insights

The HKMA’s latest update to the GSF Grant Scheme signals a strategic recalibration aimed at deepening Hong Kong’s green finance market. By incentivizing larger‑scale bond issuances, enhancing ecosystem competitiveness, and extending support to transition finance and new entrants, the revisions move beyond mere administrative adjustments. They reflect a proactive response to market feedback and a clear vision to position Hong Kong as a full‑spectrum green and transition finance hub. Notably, the focus on transition finance aligns with global capital reallocation toward hard‑to‑abate sectors, potentially unlocking new issuance pipelines while maintaining credibility through scheme‑level safeguards.

 

HKGFA-FCA-SCB Closed-door Roundtable on Evolving Landscape of Transition Finance

On 2 April 2026, Hong Kong Green Finance Association (HKGFA), Financial Conduct Authority (FCA), and Standard Chartered Bank co-hosted a closed-door roundtable discussion in Hong Kong focused on the evolving landscape of transition finance.

This session facilitated critical cross-jurisdictional dialogue between UK and Hong Kong regulators, asset managers, and financial institutions, including:

·       Regulatory developments in transition finance and transition planning;

·       Taxonomy interoperability and disclosure standards (including ISSB adoption);

·       Market mechanisms to mobilise capital for hard-to-abate sectors;

·       Capacity building and collaboration opportunities under existing UK-Hong Kong green finance frameworks.

Source: https://www.hkgreenfinance.org/hkgfa-fca-scb-closed-door-roundtable-on-evolving-landscape-of-transition-finance/

Lianhe Green Insights

This closed-door dialogue between Hong Kong and UK regulators and financial institutions focuses on key pain points in transition finance: mutual recognition of standards, comparability of disclosures, and the funding gap for high-carbon sectors. By advancing taxonomy interoperability and the adoption of the ISSB framework, UK-Hong Kong cooperation helps unblock "institutional bottlenecks" for cross-border green capital flows and designs feasible financing pathways for hard-to-abate industries. Such cross-jurisdictional regulatory coordination and capacity building not only strengthens Hong Kong's role as an international green finance hub but also provides a replicable practical model for global transition finance.

 

International ESG trends

UN Report Calls for Urgent Implementation of "Seville Commitment" to Reverse Global Development Financing Setback

The United Nations has released the 2026 Financing for Sustainable Development Report. The report warns that with only four years left until the 2030 Agenda expires, the world is rapidly regressing due to rising global fragmentation, increasing trade barriers, geopolitical conflicts, and frequent climate disasters. Developing countries, especially the poorest and most vulnerable, are facing multiple shocks, including tightening financing conditions, mounting debt, and a sharp decline in official development assistance (ODA). To reverse the downturn, the report proposes five priority actions: closing the $4 trillion financing gap, focusing on sustainable development impact, investing in resilience, strengthening multilateral institutions, and continuing to support multilateralism.

Source: https://desapublications.un.org/sites/default/files/publications/2026-04/FSDR2026.pdf

Lianhe Green Insights

The 2026 Financing Report reveals a harsh reality facing global development: with only four years left until 2030, most indicators have regressed rather than progressed. The $4 trillion financing gap, intertwined with geopolitical fragmentation and debt crises, has created a vicious cycle where "the more vulnerable, the more marginalized." The report emphasizes that implementing the Seville Commitment is the right direction, but the real challenge lies in how to translate commitments into actionable financing mechanisms and policy coordination at a time when self-interest among nations is intensifying and multilateral trust has been eroded.

 

SBTi Releases Trends Tracker 2025

The Science Based Targets initiative (SBTi) today published its Trend Tracker 2025, showing that  by the end of 2025, a total of 9,764 companies had achieved science-based targets certification. Over the same period, the number of companies with validated net-zero targets grew even faster, rising by 61%. SBTi also highlights that Asia is emerging as a major hub for corporate climate target setting, with growth now rivalling that of Europe. Over the past 12 months, the number of companies setting science-based targets in the region increased by 53%. Asia's role in shaping corporate climate ambition is becoming increasingly prominent.

Source: https://sciencebasedtargets.org/news/corporate-climate-target-setting-up-40-in-2025-with-asia-emerging-as-a-centre-of-gravity

Lianhe Green Insights

Science-based targets are rapidly evolving from a differentiated practice of leading companies into a mainstream market standard. The 2025 Trends Tracking Report shows that the growth rate of net-zero target validation reached 61%, significantly outpacing that of basic targets, indicating that corporate climate commitments are accelerating their transition toward deep decarbonization. More structurally significant is the rise of Asia as a "second pole" rivalling Europe, with a 53% year-on-year increase, breaking the traditional pattern of climate action dominated by the West. Behind this shift is not merely policy-driven impetus, but rather a rational corporate response to transition risks, regulatory expectations, and green competitiveness. Climate targets have become a core component of business strategy.

 

 

Mainland China ESG trends

 

China Launches World's First Panoramic Carbon Emission Accounting System

The world's first panoramic carbon emission accounting system covering production, consumption, and natural sources — the "Panshi·Yuheng Carbon Accounting Model" version 1.0 — was unveiled in Shanghai on April 8, marking a new breakthrough for China in the global field of carbon emission accounting.

Developed under the leadership of the Shanghai Advanced Research Institute of the Chinese Academy of Sciences, the "Panshi·Yuheng Carbon Accounting Model" aims to overcome bottlenecks in traditional carbon accounting, such as high knowledge barriers, difficult data processing, long cycle times, and low resolution. By leveraging generative artificial intelligence to reshape the carbon accounting paradigm, the system dynamically portrays global carbon flows and carbon traceability, comprehensively enhancing China's technological voice in global climate governance.

Source: https://www.news.cn/20260408/f7cc6d831ae343a6afc4e3c92b46534d/c.html

Lianhe Green Insights

The breakthrough of "Panshi·Yuheng" lies in using generative AI to reshape the carbon accounting paradigm, bridging the three major dimensions of production, consumption, and natural sources. Traditional carbon accounting has long been constrained by data silos and low resolution, making it difficult to support precise decision-making. This system introduces dynamic portrayal and traceability capabilities, enabling carbon flows to be "seen clearly and calculated accurately," directly addressing core pain points such as high knowledge barriers and long cycle times. This is not merely a technological iteration; it signifies China's shift from following to independently innovating in carbon accounting methodology, offering a new technical pathway reference for the world.

 

"Guidelines for Carbon Emission Accounting of Public Institutions" (JS/T 303—2026) Officially Takes Effect

On April 1, the industry standard Guidelines for Carbon Emission Accounting of Public Institutions (JS/T 303—2026), jointly issued by the National Government Offices Administration (NGOA) and the National Development and Reform Commission (NDRC) along with other departments, officially came into effect. The Guidelines specify accounting principles, boundaries, scopes, procedures, methods, and data quality management for carbon emissions of public institutions. The carbon emission accounting scope for public institutions mainly includes emissions from fossil fuel combustion, emissions embedded in purchased electricity, and emissions embedded in purchased heat. The current version does not cover Scope 3 or broader value chain emissions, but rather focuses on direct and energy‑related indirect emissions closely associated with the daily operations of public institutions.

Source: https://www.ggj.gov.cn/tzgg/202603/P020260323391227168041.pdf

Lianhe Green Insights

The official implementation of the Guidelines for Carbon Emission Accounting of Public Institutions marks a new phase of standardization and precision for carbon reduction efforts in China's public institutions. The standard focuses on direct and indirect emissions from fossil fuel combustion, purchased electricity, and purchased heat, and does not yet cover Scope 3, reflecting a pragmatic approach of "first accounting for one's own emissions." This move helps public institutions establish a clear baseline of carbon emissions, provides a unified basis for subsequent target setting and performance evaluation, and lays a data foundation for advancing carbon peak across society by sector and by step.