Navigating the Evolving Sustainable Landscape: Hong Kong's Crucial Role in Financing Transition to Sustainability
The Financial Services Development Council (FSDC) today released a research report titled “Navigating the evolving sustainable landscape: Hong Kong's crucial role in financing the transition to sustainability”.
As the world grapples with urgent climate challenges, transition finance has gained momentum globally as a means to fund hard-to-abate sectors for their gradual decarbonisation journeys. With Asia now accounting for around half of global emissions,[1] Hong Kong is strategically positioned to lead in financing sustainability transitions across the region.
“By leveraging its strengths as an international financial centre and its ability to convene diverse stakeholders, Hong Kong can drive much-needed capital flows towards decarbonisation, cementing its leadership in sustainable finance,” said Laurence Li SC, Chairman of the FSDC. “The policy recommendations put forth in the report aim to foster an enabling ecosystem where the public and private sectors can collaborate to drive impact through transition finance. This signifies Hong Kong's commitment to advancing sustainability despite shifting geopolitical landscapes.”
The report reflects insights from FSDC's dedicated industry Working Group and presents recommendations to establish Hong Kong's leading role in transition finance innovation. These recommendations entail (i) adopting a three-pillar approach to develop Hong Kong into a transition finance hub – providing policy certainty to encourage transition, promoting interoperability with regional and global taxonomies and advocating for a coordinated approach across various levels of partnership; (ii) scaling transition finance through blended finance and other financing mechanisms; (iii) establishing structured public-private dialogues to accelerate sector transitions; and (iv) expanding Hong Kong's strategic vision for greater certainty – advancing through tailored financing, technology and data management.
The full version of the report can be downloaded from the FSDC website: www.fsdc.org.hk.
[1] International Energy Agency. (2024). The changing landscape of global emissions. In CO2 Emissions in 2023. https://www.iea.org/reports/co2-emissions-in-2023/the-changing-landscape-of-global-emissions
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