At the inaugural Green and Sustainable Banking Conference, organised by the Hong Kong Monetary Authority (HKMA), its Deputy Chief Executive Arthur Yuen shed light on the pressing need for immediate action in response to escalating climate challenges.
Highlighting the pivotal role of banks in this transition, Arthur emphasised their dual responsibility in driving economic growth and attaining climate objectives. He pointed out the importance of banks enhancing their knowledge of cutting-edge technologies that support the shift to net-zero, thereby effectively directing capital and loans towards the development of such technologies.
“Banks must build up their knowledge about the latest technologies that support the transition to net-zero. Technology experts, on the other hand, need to better understand how banks evaluate a project in order to secure financing,”
The HKMA itself has adopted a three-phased approach to promote green and sustainable banking. The conference aims to bridge the gap between the banking and technology sectors, fostering dialogue and knowledge sharing to accelerate the adoption of carbon emission-reducing technologies.
Arthur outlined the HKMA’s role, which extends beyond supervision, to facilitating change in the green finance ecosystem. A key initiative is the development of a green classification framework, designed to assist banks and financial institutions in making decisions aligned with global climate goals.
“Through this conference, we try to provide a platform for the banking sector and the technology sector to discuss solutions, acquire knowledge and speed up the adoption of technologies that support the transition. Bankers will hear from energy and green building experts how their technologies can help reduce carbon emissions,”
Furthermore, the HKMA is preparing to introduce a cloud-based platform for physical risk assessment, to support banks in evaluating climate-related risks.
The HKMA’s Green Fintech Competition was also a focal point of Arthur’s speech, with 69 climate startup entries, ranging from AI-powered risk assessment tools to blockchain systems for ESG reporting. He encouraged attendees to explore these pioneering solutions, acknowledging the contributions of the participants and the judging panel.
Concluding his address to kick off the Green and Sustainable Banking Conference, Arthur called for a united effort to hasten the net-zero transition through technology, in line with the conference’s theme and the global imperative to combat climate change.
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