HKMA Highlights Urgent Need for Climate Finance in Asia Pacific

HKMA Highlights Urgent Need for Climate Finance in Asia Pacific

by February 27, 2024

At the Hong Kong Green Week – Finance Stream, Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority (HKMA), underscored the crucial importance of mobilising climate finance to aid the Asia Pacific region in its transition towards a low-carbon economy.

He underlined the necessity of urgent collective action to address climate change, highlighting the significant impact of the region on global emissions and the critical need for sustainable financial strategies to combat this global challenge.

Sustainable action is urgently needed, with an estimated requirement of US$66 trillion (HK$516 trillion) of climate investment over the next three decades.

As Asia’s leading international financial centre and green finance hub, Hong Kong has effectively channelled international investments to support sustainable regional projects.

Over one-third of Asia’s green and sustainable bond issuances are arranged in Hong Kong, and the city has taken proactive steps such as mandating climate-related disclosure and promoting innovation in green finance.

Eddie YueHKMA

Eddie Yue

“While much progress has already been made, we are keenly aware that further collective efforts are necessary to mobilise additional financing sources towards sustainable action in the region. To this end, the Hong Kong Monetary Authority has been partnering with other regulators, multilateral agencies, financial institutions and other key stakeholders to support the growth of Asia’s sustainable finance ecosystem.”

said Eddie, who emphasised the need for further collective efforts.

Initiatives include partnerships with the International Finance Corporation (IFC) and participation in the Glasgow Financial Alliance for Net Zero (GFANZ).

The Climate Business Forum: Asia Pacific, hosted by the HKMA and the IFC, will bring together over 300 global decision-makers in business and finance from 26 to 28 February. The forum will explore pressing topics in the green transformation journey, including energy transition and decarbonisation.

Eddie concluded by expressing his optimism about working together to maximise the impact of efforts in facilitating the region’s transition to a sustainable future. He underscored the importance of the Hong Kong Green Week as a catalyst for policy changes and institutional commitments towards scaling up climate finance in the Asia Pacific.

Featured image credit: Edited from Freepik