![Hong Kong must embrace green finance as both opportunity and responsibility, monetary authority CEO says](https://www.naphjas.com/wp-content/uploads/2024/02/f6d9fc39-caf5-4f39-91ad-bfd4361b478f_4c64946f.jpg)
29 Feb Hong Kong must embrace green finance as both opportunity and responsibility, monetary authority CEO says
Supporting the transition to a more sustainable future based on a low-carbon economy is not only an opportunity for Hong Kong’s financial sector but also an important effort for the good of humanity, according to the chief of the Hong Kong Monetary Authority (HKMA).
“The transition to a greener future is a shared responsibility,” Eddie Yue Wai-man, CEO of the city’s de facto central bank, said on Thursday at the Asia Securities Industry & Financial Markets Association (ASIFMA) annual conference. “It’s not just about addressing a global issue that might affect everybody, it’s also about protecting our people in our own land.”
Amid increasingly severe weather events and rising temperatures, Hong Kong must seize the opportunity, Yue said.
“Sustainability is a trend that is going to continue,” he said. “Hong Kong is Asia’s sustainable-finance hub, and we are in a unique position to support the vision of the green transition.”
![A photo taken on December 22, 2023, shows a wind farm in Tangshan City, in north China’s Hebei Province. Photo: Xinhua](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/02/29/0e567793-faa5-4148-a822-6c54ffd4e8da_34088d0c.jpg)
The new framework should be launched by the middle of the year, the HKMA said at a separate event.
“We are targeting to launch the first phase of the taxonomy around the middle of this year,” said Willy Mak, chief manager of banking policy at HKMA, speaking at another seminar on Thursday.
Green finance: surge of climate-transition guidance to promote decarbonisation
Green finance: surge of climate-transition guidance to promote decarbonisation
The authority is working on summarising industry feedback from a consultation process last May that asked for input into developing a prototype green classification framework for adoption in the local market, he added.
Meanwhile, as mainland China’s economy enters a period of moderate growth, it still presents an array of long-term growth opportunities, including the green transition.
“The focus for China is shifting from quantity to quality,” said Yue. “We must not lose sight of the long-term growth drivers coming from China.”
All of these trends represent “long-term investment opportunities”, he said. Other positive growth factors in China include its increasing pace of urbanisation and technological innovation.