HONG KONG - As Asia's leading international financial center, Hong Kong is well-positioned to channel investment for the green transformation of the economy of the region and beyond, officials said Wednesday.

Speaking at the US-China High-Level Event on Subnational Climate Action in Berkeley, California, Financial Secretary Paul Chan Mo-po said more than one-third of Asia's green and sustainable bond issuances were arranged in Hong Kong as the city participates in international green standard-setting.

The ratio of electric vehicles among all newly registered private passenger cars in Hong Kong soared from 6.3 percent in 2019 to 78 percent in the first quarter of 2024, Financial Secretary Paul Chan Mo-po said 

He added that Hong Kong is committed to achieving carbon neutrality by 2050, with the ratio of electric vehicles among all newly registered private passenger cars in the city soaring from 6.3 percent in 2019 to 78 percent in the first quarter of 2024.

“Hong Kong is well-positioned to channel investment to the green transformation of the economy in China, Asia and beyond, playing our part as a member of the global village to combat climate change for our future generations together,” Under Secretary for Financial Services and the Treasury Joseph Chan Ho-lim said at the same event. 

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“As our Financial Secretary mentioned earlier, Hong Kong has already become the largest center for arranging green and sustainable bond issuance in Asia for consecutive years, accounting for 37 percent of the Asia market last year,” he added.

Chan said there were 219 ESG (environmental, social, and governance) funds authorized by the Securities and Futures Commission in Hong Kong, with total assets under management (AUM) of $170 billion, at the end of last year. 

He added that the number of ESG funds and the total AUM of ESG funds grew by 24 percent and 20 percent respectively on a year-on-year basis. 

“In addition to our scale and growth in green finance, Hong Kong has also become a pioneer in developing new green financial products. The first Asian Green Bond Exchanged Traded Funds (ETFs) and Asia's first Retail Certificate of Green Deposits were also issued in Hong Kong,” Chan said.

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“The Hong Kong SAR government has led by example by issuing close to $25 billion equivalent in green bonds since 2019 under our Government Green Bond Programme… These issuances provide benchmark pricing for potential issuers and enrich our sustainable finance ecosystem,” he added. 

Chan said the HKSAR government last year became the first government in the world that issued tokenized Government Green Bond, and it recognizes the importance of combining green finance and fintech to further improve the efficiency of channeling green capital to combat climate change. 

Secretary for Transport and Logistics Lam Sai-hung also spoke at the event, noting that Hong Kong intends to develop itself into a green shipping hub and is looking into the feasibility of providing green fuel bunkering for both local and ocean-going vessels. 

To support the development of Hong Kong's green fleet, the HKSAR government has set aside some $8 million to provide incentives for Hong Kong-registered ships that attain high ratings in the Carbon Intensity Indicator of the International Maritime Organization (IMO). 

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“Once launched, which will be within a month from now, Hong Kong will be a pioneer flag administration supporting the IMO's green shipping policy on the Carbon Intensity Indicator,” Lam said.