Chief Executive of the Hong Kong Monetary Authority Eddie Yue Wai-man speaks at a press conference in Hong Kong on March 16, 2020. (PARKER ZHENG / CHINA DAILY)
Hong Kong will highlight its role in green finance, as climate investment opportunities in emerging markets are expected to reach US$29 trillion in the next 10 years, Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue Wai-man said on Monday.
The remarks were made as the HKMA signed a collaboration agreement with the International Finance Corporation, a member of the World Bank Group, on a green commercial banking alliance.
The HKMA signed a collaboration agreement with the International Finance Corporation, a member of the World Bank Group, on a green commercial banking alliance
The alliance aims at pooling financial institutions, commercial banking organizations, research institutions, and innovative technology companies, to help banks outline plans for emerging markets to cope with climate change.
Yue stressed that many international banks have established their Asia-Pacific headquarters in Hong Kong, and the city is capable of providing experience for international companies and catering to the rising demand for green finance.
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Hong Kong has an efficient ecosystem in developing green finance, Yue said. The authority will cooperate with different stakeholders, including banks, to cope with the risks of climate change in the future, he said.
The HKMA stressed that “environmental, social and governance” considerations are among the most important in any investment portfolio, and that if investment opportunities are equal, ESG elements will be given priority.
Darryl Chan Wai-man, HKMA’s executive director (external), said ESG helps manage risks and reduce investment volatility. He noted that green investment products have relatively low volatility under the pandemic, as they are long-term investments and investors are less sensitive to short-term fluctuations.
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HKMA is currently promoting a Government Green Bond Programme with a ceiling of HK$100 billion (US$12.9 billion). It is also working with mainland authorities to support the central government in achieving “carbon neutrality” by 2060.
