Riccardo Puliti (left), regional vice-president for Asia and the Pacific at the International Financial Corp, and Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, pose for a photo during the Climate Business Forum: Asia Pacific, in Hong Kong, Feb 27, 2024. (PROVIDED TO CHINA DAILY)
Hong Kong, as a leading international financial center and growing hub for innovation and technology, has made significant contributions to supporting sustainable development in Asia Pacific, and is poised to take on an even greater role in advancing climate finance in the region.
The remarks were made by financial experts at the Climate Business Forum: Asia Pacific on Tuesday, which is the anchor event at the ongoing Hong Kong Green Week.
More than one-third of the Asia-Pacific region’s green and sustainable bonds were issued in Hong Kong in 2022, “reflecting the city’s increasing prominence in sustainable finance”, Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, said.
ALSO READ: More application scenarios sought for HK green startups
The annual issuance of green and sustainable debt in Hong Kong has expanded from $12 billion in 2020 to over $80 billion in 2022, a six-fold increase in two years.
In the last few years, Hong Kong has reached several significant milestones in the field of sustainable finance, including “the world’s first tokenized green bond issued by a government, as well as the issuance of the world’s largest retail green bond and Asia’s largest ESG bond,” said Riccardo Puliti, regional vice-president for Asia and the Pacific at the International Financial Corp.
As a global finance center, the gateway connecting the Chinese mainland and the rest of the world, as well as Asia’s sustainable finance hub, Hong Kong can do a lot more in climate finance.
Eddie Yue Wai-man, Chief Executive of the Hong Kong Monetary Authority
In addition, “Hong Kong is also a growing innovation hub with excellent and homegrown technologies, which has the potential to solve environmental challenges facing emerging markets across the region.”
Lauding Hong Kong’s unique combination of financial strength, technical know-how and experience, Puliti said the city finds itself in a prime position to facilitate and channel the necessary investments required to support businesses in accelerating low-carbon transition across the Asia-Pacific region.
READ MORE: Officials tout biz opportunities at HK GreenTech Summit
The Asia Pacific region has been facing increasing vulnerability to the impact of climate change, given the rise in the intensity and frequency of extreme weather events. Meanwhile, the region is a key contributor to the issue, emitting over half of the world’s carbon dioxide, according to Yue.
While Hong Kong’s greenhouse gas emissions are not substantial given its small physical size, Yue said “the city is committed to doing its part”.
“As a global finance center, the gateway connecting the Chinese mainland and the rest of the world, as well as Asia’s sustainable finance hub, Hong Kong can do a lot more in climate finance.”
ALSO READ: Hong Kong Green Week, GreenTech Summit 2024 open
Hong Kong indeed has been actively taking steps to contribute to the low-carbon transition in the region through supporting green financing and fostering innovation, Yue added.
In October 2022, for instance, the Hong Kong Stock Exchange unveiled the Core Climate – a voluntary carbon marketplace. The platform was set up to facilitate effective and transparent trading of carbon credits and instruments, and support the global transition toward achieving net-zero emissions.
The special administrative region government launched a three-year Green and Sustainable Finance Grant Scheme in May 2021, providing eligible bond issuers and loan borrowers with financial incentives.
READ MORE: HK issues the world's first multi-currency digital green bond
In 2020, the HKMA and the city’s securities regulator initiated the establishment of the Green and Sustainable Finance Cross-Agency Steering Group as a “consistent approach to coordinate the efforts of the whole financial sector”.
