Rethinking the Role of Sustainable Finance in Hong Kong

Hong Kong’s push to develop as a hub for sustainable finance comes in the midst of increased scrutiny on the effectiveness of green bonds to support projects that have the biggest impact in lowering emissions, as well as the effectiveness of listing requirements and pressures from sustainable investing frameworks to guide corporations to act more sustainably. 

By answering these questions, this panel hopes to deepen the understanding of Hong Kong’s role as a sustainable financier, ensuring impact from the government’s current push and enhancing Hong Kong’s future outlook. 

Learnings 

• Since the launch of the Centre for Green Finance in 2019, Hong Kong has made rapid strides towards its goal of becoming a global hub for sustainable finance. However, the data on the global outlook of green financing reveals that in comparison to its other premier financial offerings, green financing in Hong Kong is still in its nascent stages. Hong Kong issued green bonds, in the amount of USD 3.5 billion over the past 3 years – places Hong Kong’s total behind that of Spain and Canada, a fraction of the USD 68 billion in bonds issued by China in just one year. 
• To continue Hong Kong’s push to be a sustainable finance hub, this panel aims to revisit Hong Kong’s initial pitch for becoming a sustainable finance hub and track the progress it has made since 2019. 
• Beyond channelling investment to new renewable energy, green transport, and green building projects, have green bonds been leveraged effectively to improve the environmental performance of existing buildings and infrastructure?  

• Looking beyond the Greater Bay Area, how can Hong Kong service the needs of its neighbours, especially as ASEAN countries remain some of those most in need of sustainable development and exposed to the dangers of climate change?  

Post-Event Actions 

• Understand that harnessing the financial potential of sustainable development will require the collective ambition and innovation of businesses, financial institutions and policymakers. 
• Gain insights on the opportunities and barriers for the city to advance its green and sustainable finance ambitions and ensure long-term progress and impact beyond Hong Kong and the GBA.