Hong Kong has demonstrated its pivotal role in advancing Asia’s climate leadership, with a rebound in sustainable financing activity reflecting growing investor appetite, and an increase in the momentum of international entities tapping into the local market, according to industry insiders.

At a joint media briefing on Friday, Invest Hong Kong (InvestHK), the special administrative region government's investment promotion arm, and Hong Kong Green Finance Association (HKGFA) shared an update on the city’s green and sustainable finance landscape ahead of the upcoming Hong Kong Green Week.

HKGFA Chairman and President Ma Jun said that under the challenging backdrop of geopolitical uncertainties — particularly following the US withdrawal from the Paris Agreement — global sustainability activities have slowed down and some investors in Asia have raised concerns over related investments.

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He highlighted Asia’s potential to lead global climate action, especially through the financial sector, citing China’s rapid green economy growth and recent updates to its green finance taxonomy. Ma said he expects the region’s traditional finance sector to make a breakthrough and achieve annual growth of 100 percent in each of the coming few years.

The HKSAR also plays an important role in Asia’s advancement in climate leadership, given its status as an international financial center. Huang Chaoni, the association’s executive vice-president, said despite negative sentiment in the first half of the year, there have been signs of recovery in the local financial market.

According to Huang, Hong Kong’s green and sustainable bond issuance jumped nearly 80 percent in the period, compared to the same time in 2024. She added that the SAR’s local currency is “becoming a much more attractive choice” to investors and issuers, due to the city’s stable market environment and its more favorable lending rates.

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“Bonds with ESG characteristics are now really gaining traction in the market. We see an increasing momentum of non-Chinese international entities tapping the local market with sustainability features,” she said.

This year’s Hong Kong Green Week, which runs from Sept 8 to 12, will kick off with the HKGFA’s annual forum. The event will highlight Hong Kong's strategic priorities and achievements in sustainability, including its policy roadmap, robust regulatory framework and commitment to international collaboration.

InvestHK said it will join hands with the association to further promote green and sustainable finance, and to ignite a powerful wave of cross-sector partnerships and advance sustainability goals.

"Hong Kong will further solidify its position as a launch pad for green and sustainable capital during the upcoming Hong Kong Green Week”, said King Leung Hong-king, InvestHK’s global head of financial services, fintech and sustainability.

Contact the writer at gabylin@chinadailyhk.com