Sustainability experts and financial leaders endorsed the Hong Kong Special Administrative Region’s efforts to become a green and sustainable finance hub at a forum on Friday, citing the city’s sophisticated green infrastructure and hefty government backing as crucial advantages.

At the “International Communication Forum: Pathways to a Sustainable Future”, Hong Kong Chief Executive John Lee Ka-chiu noted the SAR government’s sweeping plans for accelerating green infrastructure development.

The SAR government aims to increase its electric vehicle charging parking spaces to 200,000 by 2027. “The transformation has already begun,” Lee said, pointing to the city’s surge in electric vehicle adoption, “from about 14,000 five years ago to over 100,000” vehicles currently on Hong Kong’s roads.

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Regarding the financial sector, the city’s leader said the Hong Kong Monetary Authority has developed a “sustainable finance action agenda” with eight specific goals. Local banks will be required to achieve net-zero operations by 2030 and eliminate financed emissions by 2050.

“Core Climate, an international carbon marketplace, launched by the Hong Kong Stock Exchange, is the world’s only carbon market trading in both Hong Kong dollars and renminbi,” Lee said.

The government is also launching regulatory reforms, including mandatory adoption of International Sustainability Standards Board disclosure standards. “We have already launched the consultation this week,” Lee confirmed, “underlining our commitment in facilitating sustainable financing and investment for the global agenda of green transition.”

On the transportation front, Lee announced new subsidies for the taxi industry and franchised bus companies to transition to electric vehicles. The city will also pioneer trials of hydrogen fuel cell heavy vehicles, marking a significant step toward zero-emission commercial transport.

According to its green agenda, Hong Kong intends to cut half of its carbon emissions by 2035 and achieve carbon neutrality by 2050.

Liu Meng, head of Asia-Pacific Networks at United Nations Global Compact, hailed Hong Kong’s leadership in sustainable finance, noting that the city “was the fourth-largest source of green bonds last year” and an early adopter of ESG disclosure requirements for listed companies.

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Looking ahead to 2030, Liu outlined five ambitious challenges for businesses, including ensuring living wages for all employees, setting science-based emissions targets aligned with 1.5 degree Celsius pathways, achieving gender pay equality, increasing sustainable investments, and improving water resource management.

“Only by accelerating progress across all these areas, not just one or two, can the private sector become sustainable and resilient to changes in business context, policy, and natural environment,” Liu noted.

Herman Hu, chairman of online cultural exchange platform Friday Culture Ltd, noted the Chinese mainland’s achievements in renewable energy and reforestation. He referenced recent research showing the mainland’s dominance in wind power capacity and noted that the country had “installed more solar and wind power projects than all other countries combined”.

“Hong Kong’s expertise in sustainable finance and environmental innovation positions it uniquely to contribute to national and global environmental goals,” he added.

The event was jointly organized by Friday Culture Ltd, the Hong Kong Coalition led by former chief executives Tung Chee-hwa and Leung Chun-ying, and digital media outlet Dot Dot News.

Contact the writer at tianyuanzhang@chinadailyhk.com