The Hong Kong Monetary Authority formed a strategic partnership with multilateral organizations on Monday, pledging to invest at least $500 million in Asia to deal with climate change.

The partnership, announced at the Asia Climate Investment Seminar, brings together the HKMA, the Asian Development Bank, the Asian Infrastructure Investment Bank, and International Finance Corporation – a member of the World Bank Group.  

Private equity firm Actis GP LLP -- a global investment management firm focusing on sustainable infrastructure – also joined as a supporting general partner.

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The bloc will target investments in renewable energy infrastructure, energy solutions, and sustainable transportation across Asia, aiming to reduce greenhouse gas emissions and advance the region’s transition to net zero.

“The partnership marks a significant step towards strengthening strategic co-operation in sustainable finance in Asia,” the Hong Kong Special Administrative Region Government said. It said the organizations emphasize the importance of a collaborative approach involving multiple partners and institutions to address sustainability challenges in the region.

Howard Lee Tat-chi, chief executive officer of the HKMA’s exchange fund investment office, said that through strategic partnerships, Hong Kong aims to demonstrate that “achieving both financial return and sustainable development in Asia is not only feasible, but essential for our vision of progress and environmental stewardship”.

“As a leading green finance hub in Asia, Hong Kong has been facilitating a significant portion of the region’s international green and sustainable bonds in recent years,” he said.  

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Lim Kim See -- regional director for East Asia and the Pacific at IFC – said climate change is the “challenge of our time”. “The stakes are especially high in Asia, where the crisis poses major challenges to environmental stability, economic growth and human development.”

Shami Nissan, partner and head of sustainability at Actis, said Asia, comprising half of the world’s population, with rapid industrialization, carbon intensive grids and accounting for half of global emissions, is “vital to the company’s ability to deliver a net zero future”.

tianyuanzhang@chinadailyhk.com