Eric Stryson

The View | Why Hong Kong could be the answer to world’s urgent need for climate finance

With its deep and open capital markets, early lead in green finance and backing from China, Hong Kong is arguably the best-positioned among leading international finance centres to facilitate meeting the world’s need for new ways to pay for climate adaptation

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Flames from the Donnie Creek wildfire burn along a ridge top north of Fort St John, British Columbia, Canada, on July 2. Record temperatures and extreme weather around the globe are driving home the urgent need to secure reliable financing for climate adaptation and mitigation, and Hong Kong is poised to be one of the global hubs of that effort. Photo: AP

Eric Stryson

Published: 3:45pm, 14 Aug 2023

The world needs new ways to pay for climate adaptation, and Hong Kong should lead the way. Dystopian headlines of extreme weather are becoming daily reminders of our urgent need to adjust to changing conditions.

Last week, scientists released a dire report on melting Antarctic ice and abnormally high winter temperatures in the southern hemisphere. Societal adaptation to a changing climate includes retrofitting infrastructure, securing food systems, cooling or even relocating cities and more. It will require enormous levels of funding.

By 2030, the United Nations Environment Programme estimates developing countries alone will need US$300 billion per year for adaptation. Meanwhile, the International Monetary Fund projects the need will exceed 1 per cent of GDP in 50 low-income and developing economies.

With its deep and open capital markets, early lead in green finance and backing from China, Hong Kong is arguably the best-positioned among leading international financial centres to facilitate meeting these needs. However, bold and creative new approaches are required.

This past July was the hottest on record, but the fear is that it might be the coolest July for the rest of our lives. If we stopped burning fossil fuels tomorrow, the cumulative greenhouse gases in the atmosphere would continue heating the planet for decades to come.

Even a rich city like Hong Kong needs to adapt. Rising sea levels are a serious concern, as are storm intensity, heat stress and new disease vectors. Food security will be paramount, as will protecting the supply lines that transport our food.