This undated photo shows a view of Victoria Harbor in Hong Kong. (PHOTO / CHINA DAILY)

HONG KONG - Hong Kong intends to establish world-class regulation and support net-zero transition across the economy as it doubles its efforts to become an international green fintech hub and carbon market able to connect opportunities across the Chinese mainland, Asia and the rest of the world.  

The Hong Kong Special Administrative Region government’s Green and Sustainable Finance Cross-Agency Steering Group made this statement on Monday as it announced its key priorities to further consolidate the city’s role as a leading international sustainable finance hub.

"Transitioning to a net-zero future requires concerted efforts by all sectors and substantial investment,” Co-Chair of the Steering Group and Chief Executive of Hong Kong Monetary Authority Eddie Yue Wai-man was quoted as saying in the statement.  

The Steering Group, established in May 2020 to coordinate the management of climate and environmental risks to the financial sector and accelerate the growth of green and sustainable finance in Hong Kong, said the city should establish world-class regulation through alignment with global standards

“We are actively integrating transition considerations into our ongoing developmental and regulatory work, by incorporating the latest international developments on transition planning, providing clear guidance on disclosure, increasing data availability, as well as promoting innovation and technology to grow financial solutions,” he added.

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The Steering Group, established in May 2020 to coordinate the management of climate risks to the financial sector and accelerate the growth of green and sustainable finance in Hong Kong, said the city should establish world-class regulation through alignment with global standards.

The group said it plans to develop a comprehensive Hong Kong roadmap on adopting the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards as appropriate, taking into account the city's position on the global green finance map, local regulatory expectations and circumstances.

It also aims to boost Hong Kong's vibrancy and competitiveness through capacity building, data enhancement and technology innovation of the finance ecosystem to support net-zero transition across the economy.

Workshops will be arranged to support non-listed companies and small and medium-sized enterprises (SMEs) in their sustainability planning and reporting, as well as their broader usage of available data sources and tools, the Steering Group said.  

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It will develop a data portal to increase the availability and accessibility of climate-related data and explore opportunities for public-private partnerships to promote the development of technology-driven solutions.

The Steering Group also said that it aims to grow dynamic, trusted markets with diverse products to mobilize capital at larger scale to support the net-zero transition.

A dedicated workstream will explore ways to further support financial institutions and corporates in their transition planning and reporting while the city extends its efforts to become “an international carbon market to connect opportunities across the mainland, Asia and the rest of the world.”  

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"The climate transition brings tremendous business and investment opportunities. To capture these opportunities across the region, the Steering Group will continue its efforts in developing key enablers for Hong Kong, including the implementation of a clear and robust regulatory framework on sustainability disclosures, diversity in financial products, and capacity building support for the industry,” said Co-Chair of the Steering Group and the Chief Executive Officer of the Securities and Futures Commission Julia Leung.