City Can Be “World’s Leading Green Finance Centre” Says Hong Kong Financial Secretary

In his recent speech at the Hong Kong Exchanges and Clearing (HKEX) 23rd-anniversary celebrations, Hong Kong Financial Secretary Paul Chan said the Exchange can be a catalyst in enticing more green finance.

Chan said in his address: “As the world moves towards green and low-carbon transition, there is a lot more that Hong Kong can do to contribute to the global initiative. We have set our sights on becoming a leading green technology and green finance centre of the world, to create an entire new industry chain that will provide the impetus to sustain the further social and economic development of Hong Kong.”

“We are pleased to note that the HKEX is also an enthusiastic partner to green and ESG development, including the launch of Core Climate as well as setting out proposals to enhance climate-related disclosures.”

Hong Kong Core Climate was launched In October last year by HKEX and is an international carbon marketplace that seeks to connect capital with climate-related products and opportunities in Hong Kong, Mainland China, Asia and beyond.

HKEX has also signed a Memorandum of Understanding with the China Emissions Exchange to explore cooperation in tackling climate change and promoting sustainability through carbon.

Along with Singapore, and to some extent Tokyo, Hong Kong is laying out its stall to become the premier destination for Green Finance activity in Asia.

With China now leading the world in a number of green sectors such as electric vehicles and offshore and onshore wind power manufacturing, Hong Kong is well-placed as the premier financial hub in North Asia, to reap the benefits of China’s sustainability push.

While in Singapore, the Southeast Asian city-state is also rolling out what some might see as a more holistic approach to help businesses seize opportunities in the green economy.

Like its northern counterpart, Singapore as the premier financial hub in Southeast Asia launched its own global exchange for carbon credits in late 2021 called Climate Impact X (CIX), it is a joint venture of DBS Bank, Standard Chartered Bank, Singapore Exchange and Singapore state investment vehicle Temasek Holdings.

But Singapore’s strategy is not only focused on the financial sector but in areas such as carbon services and trading, and sustainable tourism, the city-state is also carving out its role as the Southeast Asian hub for decarbonisation innovation, food science and technology innovation, sustainable aviation fuel development and green finance regulation.