APAC lagging in climate response, says IFC

Most countries in the Asia-Pacific are lagging in their policy responses to climate change, International Finance Corporation vice president Riccardo Puliti told a forum yesterday.

And Hong Kong Monetary Authority chief executive Eddie Yue Wai-man, in a keynote address to the Climate Business Forum hosted by HKMA and IFC, said there is potential for further development in climate financing, as Hong Kong is an international financial center connecting the mainland to the rest of the world and serves as a hub for sustainable finance in Asia.

Yue had earlier stated that climate change "is the defining challenge of our times, and the Asia Pacific region is critical to the effort to meet this global challenge."

He revealed that issuance of green and sustainable bonds in the city has shown significant growth in recent years, reaching over US$80 billion (HK$624 billion) in 2022, a sixfold increase within a two-year period.

"Over one-third of green and sustainable bonds and loans in the Asia-Pacific region are conducted in Hong Kong," he said.

Puliti said green bonds are excellent financial instruments, and clear categorization is essential for the development of the green bond market.

Surendra Rosha, the co-chief executive of HSBC Asia Pacific, said there are enormous investment opportunities in India in areas such as the power grid, renewable energy, battery storage, and offshore wind power.