Paul Chan Mo-po, financial secretary of the HKSAR government, delivers his speech during the opening ceremony of Hong Kong Green Week and Hong Kong GreenTech Summit 2024, at the Hong Kong Convention and Exhibition Centre, in Hong Kong, Feb 26, 2024. (CALVIN NG / CHINA DAILY)
As part of its drive to establish Hong Kong as a leading green finance and technology hub, the HKSAR government on Friday released a prototype Hong Kong Green Fintech Map at a symposium focusing on utilizing technology to promote sustainable finance.
Covering around 50 Hong Kong-based fintech companies and their respective areas of expertise and services, the map aims to assist businesses and financial institutions in gaining a comprehensive understanding of the green fintech solutions available in Hong Kong and their development, Christopher Hui Ching-yu, secretary for financial services and the treasury, said at the event, one of the highlights of the six-day Hong Kong Green Week that kicked off on Monday.
“These companies have a presence in areas such as carbon credit trading, ESG (environmental, social and governance) data analysis, green and digital financial investments, and ESG disclosure,” Hui said, adding that the prototype will be regularly updated to reflect the dynamics of the industry.
As global economies pursue carbon neutrality, green transformation creates huge business opportunities and financing needs, leading to industry clusters of great diversity.
Paul Chan Mo-po, Financial Secretary
As a resource for companies and financial institutions seeking to navigate the landscape of green fintech in Hong Kong, the map is expected to enhance the profile of the featured firms, Hui noted.
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Hong Kong’s commitment to a green future was evident in the 2024-25 Budget published on Wednesday, which outlined multiple plans in the fields of green finance and technology, including the extension of the Green and Sustainable Finance Grant Scheme to eligible bond issuers and loan borrowers, and the formulation of sustainability disclosure standards.
The government will also fund research and development projects that can facilitate the city’s efforts in decarbonization and environmental protection.
“Green development is a defining feature of high-quality development,” Financial Secretary Paul Chan Mo-po said in the Budget speech. “As global economies pursue carbon neutrality, green transformation creates huge business opportunities and financing needs, leading to industry clusters of great diversity.”
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Hong Kong has set a target of achieving carbon neutrality before 2050 and aims to reduce its carbon emissions by 50 percent before 2035 from the 2005 level.
In addition to the green fintech map, Hui said “the government is implementing a range of measures to forge the integration of green finance and technology”.
One of the key initiatives is that the government will launch a Green and Sustainable Fintech Proof‑of‑Concept Subsidy Scheme in the first half of this year, providing early-stage funding for pre-commercial firms.
“Hong Kong is also a pioneer in adopting fintech in the bond market”, with an offering of HK$6 billion ($767 million) worth of digital green bonds denominated in HK dollars, renminbi, US dollars and euro on Feb 7.
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Moreover, the Green and Sustainable Finance Cross-Agency Steering Group, in partnership with the Hong Kong University of Science and Technology, has developed two tools aimed at helping users, especially small and medium-sized enterprises, to calculate their greenhouse gas emissions based on their actual activity levels.
Noting that Asia is projected to have a climate investment demand of $66 trillion in the next 30 years, Hui emphasized that “Hong Kong should leverage its advantages in financial services to meet the funding requirements of climate projects and facilitate development of green transition initiatives, fostering positive change in global sustainability.”
