Speech by Permanent Secretary for Financial Services and the Treasury (Financial Services) at Climate Finance Forum: The Road to Net Zero (English only) (with photos)
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Bonnie (Chief Executive Officer of the Hong Kong Exchanges and Clearing Limited (HKEX), Ms Bonnie Chan), Dirk (President and Chief Executive Officer of the International Emissions Trading Association (IETA), Mr Dirk Forrister), Mary (Vice Chair of the Glasgow Financial Alliance for Net Zero (GFANZ) and Head of the GFANZ Secretariat, Ms Mary Schapiro), distinguished guests, ladies and gentlemen,
It is my great pleasure to join you at the Climate Finance Forum this morning.
A lot of pertinent views and initiatives for action have been raised for achieving net zero over the past two days of the Hong Kong Green Week 2025. Financing is a critical part of the formula. As an eminent fundraising platform, the HKEX is well placed to host a forum on such an important topic, drawing on the reflections from the International Carbon Markets Summit held in this very same venue earlier this year. As an international financial centre with openness to the world and the unique advantage of connecting with the Mainland market, Hong Kong is keen to bring together market participants, experts and policymakers to deepen the dialogue and foster collaboration on climate finance.
Hong Kong is staying its course on the green and sustainable agenda even as world co-operation on this is being put to the test. The Government has made clear policy commitments and set out concrete action plans to advance our role as a green finance hub, encouraging efficient asset allocation, innovation and public and private partnership to build an enabling ecosystem along the way.
For example, it is well noted that Hong Kong arranges 45 per cent of green and sustainable bonds done through the region, leading the Asian market. We also have over 200 authorised environmental, social and governance (ESG) funds with over HK$1.1 trillion AUM (assets under management), an increase of 18 per cent from three years ago.
Added to these, we have introduced two batches of tokenised government green bonds, and are earnestly preparing for the third issuance. Our plan is to regularise the issuance of tokenised bonds.
With the same innovative spirit and recognising the long R&D (research and development) cycles and capital-intensive nature of innovation, the HKEX has introduced a dedicated listing channel for specialist companies developing breakthrough technologies, including those focusing on new energy, advanced materials, and environmental protection.
There has been an active stream of listings of electric vehicles (EV), EV supply chains, energy storage, and hydrogen energy on the Hong Kong Stock Exchange. The market capitalisation of the new energy sector now stands at US$806 billion, an impressive six-fold growth compared with that of 10 years ago and representing over 13 per cent of the total Hong Kong stock market. Without a doubt, the HKEX is now one of the world's largest EV fundraising/investment platforms.
Talking about new energy, the HKSAR (Hong Kong Special Administrative Region) Government has promulgated an Action Plan on Green Maritime Fuel Bunkering, setting out an ambitious target to develop Hong Kong into a premier green maritime fuel bunkering and trading centre. We are also promoting the application of sustainable aviation fuel (SAF) at Hong Kong International Airport and will announce an SAF consumption target within this year.
With the setting up of the international carbon marketplace, Core Climate, for the trading of voluntary carbon credits, Hong Kong has taken one big step forward in advancing the carbon credit tool to encourage corporate decarbonisation. No doubt, Paul (Group General Counsel and Group Chief Sustainability Officer of the HKEX, Mr Paul Chow) will share with you more on this later this morning. For now, it is worth pointing out that Core Climate is currently the only carbon marketplace that offers Hong Kong Dollars and Renminbi settlement, and there has been substantial Belt and Road region participation in the 60-plus projects handled by Core Climate so far.
Sustainability information disclosure provides the necessary transparency for the buy and sell sides as well as for general societal benefit. Last year, the Financial Services and the Treasury Bureau launched a Roadmap on Sustainability Disclosure in Hong Kong setting out the pathway for large publicly accountable entities to fully adopt the ISSB Standards (International Financial Reporting Standards - Sustainability Disclosure Standards) of disclosure. The Hong Kong Institute of Certified Public Accountants has since published the Hong Kong Sustainability Disclosure Standards. In June 2025, Hong Kong was confirmed by the International Financial Reporting Standards (IFRS) Foundation as among the first set of jurisdictions having set a target of fully adopting the ISSB Standards. The HKEX acts even faster and became one of the first exchanges to update climate disclosure requirements in reference to IFRS S2.
As part of the sustainability disclosure ecosystem, the Accounting and Financial Reporting Council plans to release a proposed local regulatory framework for sustainability assurance for public consultation within this year, covering issues such as the entities required to obtain assurance; the scope, timing as well as providers of assurance, etc. We look forward to the exchange of views at the Forum on Sustainability Disclosures this afternoon.
Hong Kong is a steadfast believer in multilateral efforts and solutions. We are glad to have the presence of the International Emissions Trading Association and the Glasgow Financial Alliance for Net Zero today. Through collaborations and concerted efforts, as well as empathy for the well-being of planet Earth, we have the potential to create a sustainable and resilient future, turning vision into action and reality. With these remarks, I wish all of you a fruitful Forum today. Thank you.
Ends/Wednesday, September 10, 2025
Issued at HKT 14:48
Issued at HKT 14:48
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