Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the 2025 Hong Kong Green Finance Association (HKGFA) Annual Forum "Navigating Climate Finance and Geopolitics: Strategies for Transition" today (September 8):
      
     Good afternoon, distinguished guests, ladies and gentlemen. It is a privilege to address you at the 2025 Hong Kong Green Finance Association Annual Forum, themed "Navigating Climate Finance and Geopolitics: Strategies for Transition".
      
     As Asia's premier international financial centre, Hong Kong is uniquely positioned to channel global capital toward a sustainable future. Amid geopolitical complexities, trade uncertainties, and the urgent need for climate actions, our city is poised to lead the green transition across Asia and beyond.
      
     Let me reaffirm Hong Kong's role as Asia's leading green finance hub. Last year, our green and sustainable debt market, encompassing bonds and loans, surpassed US$84 billion. Green and sustainable bonds alone reached US$43 billion, capturing 45 per cent of the regional market and securing Hong Kong's position as Asia's top-ranked green bond market for seven consecutive years since 2018.
      
     To sustain this leadership, we have adopted a four-pillar strategy in partnership with financial regulators and industry stakeholders, including (i) promoting market development, (ii) fostering financial innovation, (iii) enhancing sustainability transparency, and (iv) nurturing talent and enhancing data. Allow me to elaborate on each.
 
First pillar: promoting market development
 
     Our Government Sustainable Bond Programme, expanded in May last year to cover sustainability on top of green projects, drives the development of sustainable initiatives by the Government and our green bond market. As of June this year, we have issued approximately HK$240 billion equivalent in green bonds, denominated in Hong Kong dollars, Renminbi, euros, and US dollars, with tenors ranging from one to 30 years. These issuances provide a critical benchmark for other issuers in Hong Kong and the region.
      
     The programme supports projects across nine categories, including, for example, renewable energy, energy efficiency and conservation, pollution prevention and control, waste management and resource recovery, and more. To date, it has funded 116 local green projects. Our annual Green Bond Report, with the 2025 edition due this month, details the allocation of proceeds and environmental benefits, reinforcing transparency and credibility.
      
     Bond issuances aside, we have also been developing the carbon market. The Hong Kong Exchanges and Clearing Limited (HKEX) operates Core Climate, an international carbon marketplace enabling transparent trading of carbon credits to support global net-zero transition. It is the only platform offering settlement in Hong Kong dollars and Renminbi for international voluntary carbon credits. By the end of last year, Core Climate has attracted 100 participants. Carbon credits traded on the platform are sourced from certified projects for example in forestry, solar, wind, and biomass across Asia, South America, and Africa, aiding governments and businesses in furthering their efforts for low-carbon transition.
      
     The HKEX has also signed Memoranda of Understanding with Mainland China's carbon markets, including the Beijing and Shenzhen Green Exchanges, to share expertise and foster regional collaboration.
      
     Also, Hong Kong has advanced our green finance ecosystem beyond green bonds and the carbon market through the development of a local green classification framework. The Hong Kong Taxonomy for Sustainable Finance, covering 12 key economic activities, was launched last year with a view to standardising green classification, reducing greenwashing risks, and enhancing information for decision making by investors. We are engaging the industry to expand the taxonomy, and will widen the scope of sectors and economic activities to include transition elements and additional sustainable activities, reinforcing our role as a leading sustainable and transition finance hub.
 
Second pillar: fostering financial innovation
 
     Innovation is central to our green finance development strategy, and will inspire more ways to tackle the global problem of climate change. Hong Kong has pioneered the world's first government-issued tokenised green bond and the first multi-currency digital bond. These initiatives demonstrate our leadership in bond markets, green finance, and fintech. Tokenised bonds enable efficient settlement, broaden investor access, enhance interoperability, and improve transparency and efficiency. Continuing the success of our earlier issuance, the Hong Kong Monetary Authority (HKMA) is preparing our third tokenised bond issuance, advancing our plans for regularised offerings.
      
     To integrate fintech with green finance, we are expanding our green fintech ecosystem, positioning Hong Kong as a regional green fintech hub. The Green and Sustainable Finance Cross-Agency Steering Group updated the Hong Kong Green Fintech Map this year, providing a comprehensive overview of green fintech companies and services and facilitating adoption and application.
      
     Also, we launched the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme last year, offering early-stage funding to eligible technology companies and research institutes in Hong Kong. So far 60 projects have been approved, advancing commercialisation and adoption.
      
     As for further innovation in carbon market, the HKMA's Project Ensemble explores tokenised deposits and Central Bank Digital Currency for interbank settlement, as well as tokenisation of real-world assets including carbon credits via blockchain. We are also exploring collaborations with central bank peers on enhancing transparency and efficiency in carbon credit trading through blockchain technology.
 
Third pillar: enhancing sustainability transparency
 
     As sustainable development gains global prominence, ensuring accurate and consistent sustainability information is critical for investors and market participants. In December last year, we launched the Roadmap on Sustainability Disclosure in Hong Kong, outlining a clear path for large publicly accountable entities to adopt the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards by 2028.
      
     In June this year, the IFRS Foundation recognised Hong Kong as one of the first jurisdictions to commit to fully adopting ISSB (International Sustainability Standards Board) standards, underscoring our dedication to transparency in capital markets. This facilitates informed investment decisions and promotes global capital flows via our trusted market.
      
     Also, our Stock Exchange has introduced enhanced climate-related disclosure requirements, based on the IFRS S2 Climate-related Disclosures, phasing in for listed companies from the beginning of this year.
      
     As for the support to SMEs (small and medium-sized enterprises) in sustainability reporting, our Steering Group is enhancing the Climate and Environmental Risk Questionnaire for non-listed companies/SMEs. Launched in 2022, the Questionnaire is intended to provide a free and easy-to-use sustainability reporting template to corporates in need, facilitating their understanding of sustainability performance and raising their sustainability profiles to lenders, investors, and supply chain clients. Taking into account industry feedback and latest market developments, the Steering Group is enhancing the Questionnaire to make it more accessible and inclusive. The 2.0 version of the Questionnaire will soon be rolled out on the website of the Steering Group. Please watch out for that. Going forward, we will collaborate with the industry further to promote the usage of the Questionnaire.
 
Fourth pillar: nurturing talent and enhancing data
 
     Building a skilled workforce is essential for advancing our green finance development. We launched the Pilot Green and Sustainable Finance Capacity Building Support Scheme for local market practitioners, professionals, students, and graduates. By July this year, the scheme has a coverage of 95 programmes and qualifications, including banking, asset management, insurance, and more, from local and international providers. Over 7,600 applications have been approved, totaling more than HK$42 million in reimbursements. We will extend this scheme to 2028 to sustain our efforts in talent development.
      
     Finally, it is important for us to enhance investor education and understanding on green finance through better data, equipping stakeholders with analytical tools and insights for informed decision-making. The Steering Group has thus launched a data portal, containing Government data sources for assessing physical risks in Hong Kong, such as historical data on catastrophe damages and tropical cyclone impact data. We encourage the use of the tools and technology to enhance data availability and understanding of the impact of climate change in Hong Kong. We also hope it would in turn facilitate development of more targeted sustainable finance and technology solutions enabled by data insights.
      
     Before I conclude, I would like to invite all of you to engage in Hong Kong Green Week, our flagship sustainability event. This platform fosters collaboration among global stakeholders, and your active participation is vital to shaping a sustainable future.
      
     Hong Kong's four-pillar strategy including promoting market development, fostering innovation, enhancing transparency, and nurturing talent and enhancing data, positions us well to navigate the global challenges of climate change. By driving these initiatives, we are not only maintaining our leadership but also forging a collaborative, resilient and sustainable path forward. In this regard, I definitely look forward to continue our collaboration with HKGFA and Dr Ma (Chairman and President of HKGFA, Dr Ma Jun), and I urge you to join us in this global endeavor, turning visions into actions for a greener future. Thank you.

Ends/Monday, September 8, 2025
Issued at HKT 15:45

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