SFST's keynote speech at Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme Showcase Seminar (English only) (with photo)
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Eric (Chief Public Mission Officer of the Hong Kong Cyberport Management Company Limited, Mr Eric Chan), distinguished guests, ladies and gentlemen,
Good morning. It is my pleasure to join you today at the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme Showcase Seminar for celebrating the results of the Scheme and exchanging views on the development of green and sustainable fintech. First of all, I would like to thank Cyberport for their efforts in promoting the development of a green fintech ecosystem in Hong Kong, which includes a well-supported green fintech community to mutually share expertise and knowledge, with various opportunities for companies to test out innovative ideas and concepts as well as cross-sector collaborations. Today's Seminar exactly provides a vibrant platform bringing together key stakeholders and market participants to chart the way forward for further accelerating the development of green fintech in Hong Kong.
Hong Kong as Asia's leading green finance centre
The financial market serves as a vital conduit for channelling international capital towards sustainable initiatives that support the green transition. As Asia's leading sustainable finance hub, Hong Kong has a significant role to play in this endeavour. In 2024, the volume of green and sustainable bonds arranged in Hong Kong amounted to around US$43 billion, capturing around 45 per cent of the regional total and ranking first in the Asian market for seven consecutive years since 2018. Besides, as of June 2025, the number of environmental, social and governance (ESG) funds authorised by the Securities and Futures Commission was over 200 with assets under management of over HK$1.1 trillion. The number of ESG funds and assets under management recorded an increase of 51 per cent and 18 per cent respectively from three years ago.
To further strengthen our competitive advantage, a key priority is to position Hong Kong as a green fintech hub. Green fintech, which seamlessly combines our strengths in green finance and fintech, has immense potential to drive the transformation of the green economy. Over years of development, Hong Kong has developed a dynamic fintech ecosystem, with over 1 100 fintech companies, many of which are engaged in green or ESG-related businesses.
Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme
The Government is keen to support the development of green fintech and launched the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme in June last year. This initiative provides early-stage funding to technology companies and research institutes engaged in green fintech activities, enabling them to collaborate with local enterprises on new projects that address industry pain points. The Scheme supports the commercialisation of solutions and the completion of proof-of-concept stages, facilitating the wider adoption of green and sustainable fintech solutions within Hong Kong's business landscape. We are glad that 60 projects, covering a wide range of areas including green and digital finance and investment; ESG disclosure; compliance and regulatory reporting; carbon trading, analytics and technology; ESG data, intelligence and analytics; and ESG/climate risk modelling and assessment, have been approved under the Scheme. Stay tuned for the showcase sessions today, which will highlight the innovative green and sustainable fintech solutions funded under this Scheme.
Hong Kong Green Fintech Map
Apart from funding support, we also see the need to raise the profile and visibility of our green fintech companies. In March last year, we published the Prototype Hong Kong Green Fintech Map, which serves as a one-stop resource for information on the current status of green fintech companies in Hong Kong and the services they offer. An updated version of the Map was released in June this year, with an increase in the total number of green fintech companies from around 50 to over 60.
Innovative green investment products
In parallel with cultivating the green fintech ecosystem, we also well utilise green fintech to foster product innovation and development. Among the green bonds issued by the Government, we introduced two batches of tokenised green bonds, which represented the world's first government tokenised green bond and the world's first multi-currency digital bond respectively. These initiatives highlight Hong Kong's strengths in integrating the bond market, green and sustainable finance, and fintech. Both issuances featured multiple innovations, including a shortened settlement cycle to T+1. The second issuance also broadened investor access, supported interoperability, and improved transparency and efficiency. These initiatives provide benchmarks and references for potential issuers in the market. The Government will regularise the issuance of tokenised bonds, and the Hong Kong Monetary Authority (HKMA) is preparing to assist the Government in issuing its third tokenised bond.
Regarding the carbon market, the HKMA and the HKEX (Hong Kong Exchanges and Clearing Limited) are collaborating on Project Ensemble to experiment with the feasibility of using tokenised deposits and central bank digital currency for interbank settlements, and to explore the feasibility of tokenising real-world assets, including carbon credits, using blockchain technology.
Technology to support sustainability reporting
As global awareness of sustainable development continues to rise, we are keen to support enterprises in utilising data and technology tools for sustainability reporting. We launched a free-for-use greenhouse gas emissions calculation and estimation tool in February last year, which aims to help corporations in need to manage their environmental footprint while encouraging market participants to enhance their sustainable practices. The tool outlines its methodology and data sources, incorporating elements from both Hong Kong and the Mainland. To further encourage sustainability disclosures and improve data applicability, we will continue to collaborate with various stakeholders to facilitate better sustainability disclosures through the use of this tool.
Use of artificial intelligence to address sustainability challenges
Artificial intelligence (AI) is currently a trending topic. A study last year found that the adoption of GenAI (generative artificial intelligence) is progressing steadily across the financial services industry in Hong Kong, with 75 per cent of the surveyed financial institutions having already implemented at least one GenAI use case, or currently piloting and designing use cases and exploring potential investment areas. One example of the applications is using AI to manage greenwashing risk. They attempt to achieve this by conducting thorough analyses of the climate impact of their activities, tracking progress towards emission targets, and generating evidence-based climate reports that encompass progress, engagements, and outcomes.
In view of the trending application of AI technology, we issued a policy statement in October last year to introduce our policy stance towards the responsible application of AI in the financial market. Since the policy statement was issued, we have introduced various initiatives to assist the financial institutions in seizing the opportunities and adopting AI responsibly, including publishing practical guidelines, launching sandbox schemes, as well as organising seminars and talks for practitioners.
Ladies and gentlemen, we are committed to working closely with tech firms, research institutes, financial institutions, and other stakeholders to foster co-creation partnerships, accelerate commercial adoption, and strengthen Hong Kong's sustainable finance ecosystem. Together, we can embrace innovation and create a sustainable future. I wish you all a fruitful and inspiring day. Thank you.
Ends/Thursday, September 11, 2025
Issued at HKT 15:42
Issued at HKT 15:42
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