HKEX opens green label with a 50% revenue test

Hong Kong's exchange has opened applications for a voluntary Green Equity label for listed companies.

To qualify, a company must earn at least 50% of revenue from green activities and keep fossil-fuel revenue and investment below 5%, according to ESG News.

Applications are assessed by HKEX-approved Recognised Reviewers, and the label is reassessed annually. The investment limb means a company can clear the revenue line and still fail on holdings.

For fund selectors using the label as a screen on Hong Kong-listed exposure, that investment cap is likely the binding constraint. Annual reassessment means the badge can lapse, so a portfolio built on the designation needs rechecking each year rather than at purchase. How many listed companies clear both tests decides whether the label is a usable filter, and the reporting does not give that count.

Blackstone closed its energy transition fund at an $8.7 billion hard cap, more than 50% above the $5.6 billion fourth vintage, and has funded three platform companies and three acquisitions. Ara Partners closed its inaugural pool at $2.5 billion—$1.8 billion of fund commitments plus $700 million of co-investment—for power, biofuels and fuel distribution assets.

The Asian Infrastructure Investment Bank committed up to $100 million to TPG's Global South climate strategy, $50 million to the fund and up to $50 million for co-investments, against a $2.5 billion strategy target.

Public lenders moved in larger units. The European Investment Bank committed at least €30 billion to climate adaptation by 2030, doubling its financing pace and pairing blended finance with risk-sharing tools. The UK announced a £2 billion Energy Wealth Fund, backed by North Sea tax revenue, to invest in renewable and low-carbon energy infrastructure. The EU Innovation Fund awarded €3.4 billion of emissions-trading revenue to 77 net-zero projects, with twelve large-scale projects taking nearly half; small modular nuclear and direct air capture projects were firsts for the fund, ESG Today reported.

In debt, issuance under the EU green bond standard reached €39 billion by Oct. 7, nearly double 2025, taking cumulative volume to about €60 billion since December 2024. Citi structured a $72 million note tied to Applied Carbon biochar credits, with Nuveen participating. Investors give up a conventional coupon for payments tied to the credits the project issues and delivers.