Opinion | Hong Kong should be on the front lines of climate finance

Green development is now the consensus within the international community, especially as the devastating impact of climate change becomes ever more evident. President Xi Jinping has announced eight major steps to bolster high-quality cooperation under the Belt and Road Initiative, one of which emphasises green development.

Last year marked the tenth anniversary of the Belt and Road Initiative, during which China signed over 200 cooperation agreements with more than 150 countries and over 30 international organisations. Many related projects are likely to centre on green energy, sustainable infrastructure development and transition to a low-carbon economy.

Last year, the Asian Development Bank estimated that countries in the Association of Southeast Asian Nations will require nearly US$3 trillion in annual investment for infrastructure development until 2030, which includes building new green infrastructure and upgrading existing green facilities. This underscores the immense demand for green finance in the region.

As a leading international financial centre and trade hub, Hong Kong should play a pivotal role. Hong Kong has staunchly promoted green finance development in recent years, aspiring to become Asia’s premier green finance centre. The amount of green and sustainable energy debt issued in Hong Kong surpassed US$50 billion last year, with green and sustainable energy bonds arranged for issuance in Hong Kong accounting for 37 per cent of the Asian market.

The government also launched the Government Green Bond Programme in 2018 – later renamed the Government Sustainable Bond Programme, which has issued bonds worth around US$25 billion, funding more than 70 government green projects, including initiatives in green buildings, waste management and recycling, energy efficiency and energy conservation.