Green finance now tops US$63b a year

Cici Cao

Hong Kong issued over US$63 billion (HK$ 491.4 billion) of green bonds and debt a year on average in the past three years, Financial Secretary Paul Chan Mo-po says.

Speaking at the Hong Kong Green Finance Association's annual forum yesterday, Chan said that over 230 environment, social and governance funds managing assets worth more than US$160 billion were authorized by the Securities and Futures Commission as of June, marking a 60 percent growth over three years.

He said Hong Kong has "a very strong foundation in green finance."

HKGFA chairman and president Ma Jun called on Hong Kong to refer to the mainland's guidelines, where 22 local governments have developed a transition finance taxonomy, to attract private capital.

It is expected that the Hong Kong Monetary Authority will add 'energy supply' to Hong Kong's taxonomy for sustainable finance, along with a public consultation in early 2025, said Kenneth Hui Wai-chi, executive director of HKMA's external department.

The Hongkong and Shanghai Banking Corporation's chief executive Luanne Lim Hui-hung said the lender has been working with public and private parties for the transition and its carbon emissions in Asia have been cut by about half since 2019.

Standard Chartered said it expected an additional US$1.8 trillion to be invested in the Guangdong-Hong Kong-Macao Greater Bay Area to achieve carbon neutrality while the green finance shortfall in developing markets has reached US$95 trillion.