Helen Wong

Typhoon season is round the corner and climate change is upon us – there’s no better time to get into green finance

The Hong Kong government’s issuance of a green bond is most timely, promoting awareness of climate change and increasing the city’s profile as a hub for green finance. Around the world, sustainable investment is also growing

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A harbourside commercial building had its windows blown out when Super Typhoon Mangkhut made landfall in Hong Kong on September 16, 2018. Flooded homes, damaged infrastructure, disrupted supply chains and higher insurance premiums are some of the effects of climate change we need to plan for. Photo: AFP

Helen Wong

Published: 3:00pm, 17 Jun 2019Updated: 10:42pm, 17 Jun 2019

Typhoon season is almost upon us. If Super Typhoon Mangkhut of September 2018 and the double punch of Hato and Pakhar in August 2017 are anything to go by, we should brace ourselves for the likelihood that weather-related damage will become increasingly common and painful in the years ahead.

Against this backdrop, the Hong Kong government’s issuance of a green bond last month came at the perfect time. It spotlights the most urgent challenge facing humanity today, and at the same time helps position Hong Kong as an international hub for green finance.

The bond, part of a programme totalling nearly HK$100 billion (US$12.7 billion), has raised US$1 billion, to be used for energy efficiency, waste management, water treatment, green buildings and other environmentally friendly projects. The authorities have also announced other measures, including the establishment of a Centre for Green Finance to provide technical support to the local banking and finance industry.

Fighting climate change will require massive effort from businesses, policymakers, bankers and individuals alike. Most scientists believe it is essential to keep global warming below 2 degrees Celsius. That means societies around the world, including Hong Kong, urgently need to rewire much of the economic activity they have built up over the past 150 years.

Power stations and transport technologies have to be weaned off fossil fuels. Buildings need to consume less electricity. Consumption habits need to change. Roads, ports, electricity and IT grids need to cope with higher sea levels and more storms like Mangkhut.

Green financing will raise the trillions that need to flow into lower-carbon, climate-resilient technologies, projects and infrastructure.