Sustainability is a global strategic priority that also presents a huge investment opportunity for the organisations adopting a forward-looking approach. This includes green infrastructure which sees an estimated USD100 trillion worth of climate compatible investment required between now and 2030 according to Climate Bonds Initiative in order to meet the Paris Climate Change Agreement emissions reduction targets.
For the Guangzhou-Hong Kong-Macao Greater Bay Area (the GBA), sustainable development has consistently been communicated as a fundamental consideration. According to the 13th Five-Year Plan for Urban Infrastructure Construction in Guangdong Province, USD205 billion was needed for these infrastructure projects during 2015-2020 in the Pearl River Delta region. Hong Kong states that the government will spend USD12.9 billion a year in infrastructure for the next five years. And Macao government has also initiated over 410 public construction projects or more in 2020, with a total value of USD1.7 billion.
The Green Infrastructure Investment Opportunities, The Guangdong-Hong Kong-Macao Greater Bay Area 2020 Report (‘GIIO GBA 2020 Report’) has been prepared for the first time recognising the growing demand for green investment opportunities and to support the transition to a low carbon economy in the GBA. To provide a comprehensive understanding of the investment opportunities and the current environment in the GBA, the report provides not only the macroeconomic outlook, but also the green finance trends and opportunities with case studies. The report identifies potential green projects and assets across low carbon transport, renewable energy, green buildings, new infrastructure, sustainable water management, and sustainable waste management. The report also identifies potential investment pathways within the sectors based on the asset ownership structure, the stage in the asset’s financing lifecycle, and the investor’s mandate.
Overall, this report, supported by HSBC, presents a roadmap for policymakers, finance institutions and key stakeholders for growing green infrastructure in the GBA, which will not only help attract global capital that pursues returns and a net zero carbon future, but will also build resilience into fundamental facilities and systems that support the sustainable future of the GBA and reduce its vulnerability to climate change.