HKMA joins alliance to make banks greenerBusiness | 9 Nov 2020 4:57 pm
The Hong Kong Monetary Authority has joined hands with International Finance Corporation, a member of the World Bank Group, to encourage banks in Asia to become greener.
The Alliance for Green Commercial Banks was launched by IFC to help develop green commercial banks and encourage more green finance in order to address climate change, and the HKMA will be the first to work with the IFC on the new initiative.
As the founding member and first regional anchor for the Asia chapter of the alliance, the HKMA will serve as the hub for green finance among commercial banks in Asia.
HKMA chief executive Eddie Yue said: “It is our great honor to join hands again with IFC on the Alliance for Green Commercial Banks, and share the same mission to support financial institutions on their green transition to become leading green banks, whilst contributing towards global efforts to tackle climate change.”
Over the next five years, the HKMA and IFC will bring together financial institutions, banking industry associations, research institutions, and innovative technology providers from across Asia to develop, build, and boost the capacity for green finance and promote climate investments.
The HKMA and IFC will jointly launch targeted initiatives and campaigns in the region to undertake green finance research, provide unique market insight, tailor capacity building/training support, and provide practical guidance for banks in order to develop their own roadmap to mainstream green finance as their core business and revamp existing green financial products and services.
IFC estimates that cities in emerging markets alone have the potential to attract more than US$29 trillion (HK$22.6 trillion) in climate-related investments by 2030. The Asia-Pacific region has the highest climate-smart investment potential of any region in the world.
The HKMA has been working to promote the development of green finance in three stages, including establishing a common framework, consulting the industry and other stakeholders on the formulation of regulatory expectations, since May last year.
It plans to consult the industry on relevant regulations in the first half of next year.