Can Hong Kong become a global hub for green finance?

In the past several months, increased efforts have been undertaken to push Hong Kong towards the status of an international green finance center. For financial institutions, this means increased disclosure, data standardisation, capability building, and much more. The establishment of the GBA-GFA (Greater Bay Area - Green Finance Alliance) may also be one of the key pillars on Hong Kong’s path to becoming a global hub for green finance.

Ashley Alder, SBS, JP, Chief Executive Officer of Securities and Futures Commission, begins the discussion noting “the opportunities for Hong Kong as a sustainable finance centre are enormous,” and green finance has a huge potential impact since the footprint of Hong Kong’s market is so large. Though these opportunities are vast, Alder also mentions the need for a collaboration between the rest of the world and China, as the climate crisis cannot be solved otherwise.

Gabriel Wilson-Otto, Director of Sustainable Investing at Fidelity International, urges us to consider what is required to facilitate some of the most effective green finance solutions, such as standardised measurement and reporting methods, standardised data, increased disclosure, and an increased focus on building the capabilities of Hong Kong. As Zhang Yang, Director of Debt Origination and Advisory in the Asia Pacific branch of Crédit Agricole CIB, says, “Hong Kong is uniquely positioned because it is a super-connector between China and the international market,” and some great progress may be seen if efforts are continued in these ventures.