Speech by SFST at HKQAA Green and Sustainable Finance Forum Luncheon 2025 (English only)
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Simon (Chairman of the Hong Kong Quality Assurance Agency (HKQAA), Professor Wong Ka-wo), Professor Sun (Deputy Secretary of the CPC Xi'an Jiaotong University Committee, Professor Sun Zao) distinguished guests, ladies and gentlemen,
Good morning. It is a great honour and pleasure for me to join you today at the HKQAA Green and Sustainable Finance Forum Luncheon 2025. I am very delighted to be here among such a distinguished gathering of industry leaders, experts, and stakeholders committed to advancing sustainable development. Let me begin by acknowledging the excellent theme curated by the HKQAA for this forum: "Fostering the Development of Sustainable Finance and Technology, Promoting Climate Risk and ESG Disclosure". This theme is timely and relevant amid global challenges including climate change and environmental conservation, emphasising innovative solutions for economic resilience and planetary protection.
I must also take this opportunity to express my appreciation for the outstanding work that the HKQAA has accomplished in the realm of sustainable finance and beyond. The HKQAA has actively participated in shaping international standards for green finance. This agency has launched the Green and Sustainable Finance Certification Scheme, providing credible verification for issuers and building trust in the market. Your support for Hong Kong's sustainability disclosure roadmap is equally commendable, exemplified by the development of pioneering industry-based technical guidance on climate disclosure. This guidance represents one of the initial global efforts in this area, highlighting Hong Kong's strengths and leadership in sustainability reporting.
Furthermore, the HKQAA's initiatives in capacity building, such as offering workshops and digital tools like the GHG (greenhouse gas) Scope 3 Emission Calculator, have been instrumental in preparing the business community for enhanced climate disclosures. All these tools empower companies to measure and manage their environmental impact effectively. In the domain of carbon markets and low-carbon ecosystems, the HKQAA has introduced innovative initiatives in carbon inclusion, event carbon offsetting, and low-carbon transportation infrastructure. These efforts not only support the growth of carbon trading but also contribute to building a comprehensive low-carbon ecosystem.
Turning to the broader landscape, the Central People's Government has outlined in the 14th Five-Year Plan a commitment to green transformation, aiming to peak carbon emissions before 2030 and achieve neutrality before 2060. Hong Kong aligns with these goals, targeting carbon neutrality before 2050 and a 50 per cent emissions reduction before 2035. Globally, climate finance reached US$1.3 trillion in 2021/22, but is estimated to hit US$9 trillion annually by 2030 and US$10 trillion by 2050. This highlights the demand for green finance, where Hong Kong plays a key role in capital mobilisation.
As a premier international financial centre, Hong Kong is uniquely positioned as a "super connector" linking the Chinese Mainland with global markets. We leverage robust regulatory frameworks, expertise in standards, and connectivity to global capital. Last year, green and sustainable debt issued here exceeded US$84 billion, with bonds at US$43 billion - capturing 45 per cent of Asia's total, ranking first for seven years since 2018. This success stems from comprehensive government policies working together with the industry, of course also with the HKQAA, to foster green finance, technology integration, and of course disclosure efforts, as highlighted by the theme of this forum.
The Government has been taking the lead to promote green finance. Under the Government Sustainable Bond Programme, we have issued bonds totalling about HK$250 billion equivalent since 2019. Notable issuances include two batches of retail green bonds of HK$20 billion each in 2022 and 2023 - the 2022 issuance being the largest retail green bond globally at the time. At the same time, we have multicurrency green bonds in RMB (Renminbi), USD (US dollars), and euro totalling around HK$45 billion equivalent in 2023, marking the largest ESG (environmental, social and governance) bond issuance in Asia; and innovative tokenised green bonds, including the world's first multitranche digitally native green bonds last year and a HK$10 billion equivalent issuance last month that integrated tokenised central bank money like e-CNY and e-HKD for settlement.
To incentivise market participation, the Government launched the Green and Sustainable Finance Grant Scheme in 2021 to provide subsidy for eligible bond issuers and loan borrowers to cover part of their expenses on bond issuance and external review services. The Scheme has been extended by three years from 2024 to 2027, with an expanded scope of subsidies to cover transition bonds and loans. These measures encourage relevant industries in the region to make use of Hong Kong's transition financing platform towards decarbonisation. As of end-November this year, we have granted around HK$410 million to over 640 green and sustainable debt instruments issued in Hong Kong, involving a total underlying debt issuance of over HK$1.3 trillion.
Innovation is at the heart of our strategy, particularly in green fintech. The Green and Sustainable Finance Cross-Agency Steering Group, co-chaired by regulators, launched the Hong Kong Green Fintech Map 2025 in June this year, developed with stakeholders like Cyberport and Invest Hong Kong. This map provides one-stop information on green fintech companies in Hong Kong, enhancing their visibility. And in June last year, we introduced the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme, approving 39 applicants for 60 projects with HK$150,000 grants each to foster commercialisation.
On sustainability disclosure, my bureau FSTB (Financial Services and the Treasury Bureau) launched in December last year the Roadmap on Sustainability Disclosure in Hong Kong. The roadmap sets out Hong Kong's approach to require publicly accountable entities (PAEs), which are essentially our listing companies, to adopt the ISSB Standards (International Financial Reporting Standards - Sustainability Disclosure Standards). It provides a well-defined pathway for large PAEs to fully adopt the ISSB Standards no later than 2028. In June this year, the International Financial Reporting Standards Foundation (IFRS Foundation) published the jurisdictional profiles on adoption of the ISSB Standards and Hong Kong was confirmed as among the initial set of jurisdictions having set a target of fully adopting the ISSB Standards. This demonstrates Hong Kong's commitment to enhancing the transparency of information on sustainable development in the capital markets, facilitating investors to make investment decisions and promoting global capital flows. My bureau in collaboration with financial regulators and stakeholders will continue to support the pragmatic implementation of the Hong Kong Standards through enhancing capacity building and promoting the use of technological solutions.
Another key topic is about carbon markets, we are extending our efforts to build Hong Kong into an international credible market to connect opportunities across the Mainland, Asia and the rest of the world. The Hong Kong Exchanges and Clearing Limited (HKEX) launched an international carbon marketplace Core Climate in October 2022, which is currently the only carbon marketplace that offers HKD (Hong Kong dollars) and RMB settlement for the trading of international voluntary carbon credits. The number of participants on the platform reached 100 by the end of last year. The HKEX signed a Memorandum of Understanding (MOU) in September this year with Guangzhou Emissions Exchange, Shenzhen Green Exchange and Macao International Carbon Emission Exchange to co-operate in accelerating the carbon markets and green finance ecosystem development across the Greater Bay Area. Under the MOU, the four exchanges will work closely to explore new opportunities in carbon markets and green finance. This collaboration aims to foster deeper dialogue and facilitate the exchange of expertise among the exchanges and markets participants, supporting the development of a robust and vibrant green finance ecosystem across Hong Kong and the Greater Bay Area.
Looking forward, Hong Kong's leadership in sustainable finance requires unwavering commitment, innovation, and collaboration. This forum, with insights from a lineup of distinguished speakers, will provide visionary perspectives helping us to drive further development. Through partnerships with all stakeholders, we will continue to unlock capital for a greener future, extending beyond Hong Kong to Asia and globally. Thank you once again for having me today and at the same time, to the HKQAA for organising this event. I wish the forum every success and look forward to fruitful discussions and more insights to inform us to make better decisions going forward.
Thank you.
Ends/Thursday, December 11, 2025
Issued at HKT 12:56
Issued at HKT 12:56
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