As the manager of the Exchange Fund, the Hong Kong Monetary Authority aims to attain net-zero emissions for its investment portfolio by 2050, chief executive Eddie Yue Wai-man said.
The focus will be on environmental, social and governance or ESG as it is known, and green assets.
Yue said the HKMA plans to establish a platform in the private equity sector to foster the green transformation through capital circulation in Asia.
Additionally, there are plans to take further initiatives in the bond market, aiming to construct a green financial ecosystem for Hong Kong in the future.
Climate change is urgent as Asia's carbon emissions constitute approximately half of the global total and shifting Asia onto a sustainable growth path would significantly contribute to fighting climate change.
Market estimates indicate a need for around US$66 trillion (HK$516 trillion) over the next three decades.
Given the substantial funding required, public sectors alone cannot meet this need, he said, highlighting the role of climate finance in mobilizing private capital for climate actions.
He said that promoting low-carbon transition is challenging with only banking participation in financing and hybrid finance involving entities like hedge funds or family offices willing to take on higher risks for greater returns, is a solution.
