Following is the speech by the Financial Secretary, Mr Paul Chan, at the Hong Kong Climate Week 2026 today (March 26):

Professor Zhang Xiang (President and Vice-Chancellor of the University of Hong Kong (HKU)), Professor Gong Peng (Vice-President and Pro-Vice-Chancellor (Academic Development) of HKU), Dr Dai Fan (Senior Fellow of the Kennedy School of Government, Harvard University), scholars, distinguished guests, ladies and gentlemen,

     Good morning. It is a pleasure to join you today for the Hong Kong Climate Week. I’m glad to note that this event has become a nexus for exploring the many facets of climate change, and a platform for discussing how this city can better leverage its unique strengths to accelerate the net zero transition. Not only for Hong Kong, but also for the region and the global community.

     We are all aware of the clear and present danger of climate change. Yet the ongoing conflicts in the Middle East have underscored an additional dimension that is often overlooked; diversifying energy supplies is not only essential for reducing carbon emissions, it is also a matter of national security, critical to the resilience and even survival of countries and economies.  This imperative will only intensify in the age of AI, where power supply is fast becoming one of the most precious resources.  

China's green transition

     This is why the transition to low-carbon energy is set to gain greater urgency in the time to come. We are pleased that our country, China, is at the forefront of this process. It has steadily advanced its "3060" carbon neutrality goals, and is accelerating the development of a next-generation, low-carbon power system. 

     This year marks the beginning of the 15th Five-Year Plan period. In the Outline of the Plan endorsed at the Two Sessions in Beijing earlier this month, building a beautiful China is a central theme. Binding targets are set. They include, among other things, a cumulative 17 per cent reduction in carbon intensity over the next five years and an increase in the share of non-fossil energy in total energy consumption to 25 per cent.

     What is also worth noting is that in the Outline, green transition is deeply embedded in the country's drive to build a modernised industrial system and advanced infrastructure. In other words, decarbonisation is integral to China's growth strategy, industrial upgrading and long-term competitiveness.

Hong Kong's contributions

     Ladies and gentlemen, these national goals will be translated into concrete progress. And Hong Kong stands ready to play our part, ready to contribute. 

     We are moving steadily toward our climate commitment: to halve carbon emissions by 2035 from the 2005 levels, and to achieve carbon neutrality by 2050.

     But there is much more we can and should do to support the national and regional drive to carbon neutrality. To this end, we believe we can leverage our unique strengths as a leading international financial centre and a rising global innovation and technology hub.

Green finance

     Globally, the financing gap for green transition is huge. Bridging this gap requires substantial private sector capital. We believe the key strategies are: more innovation in green and sustainable financing, harmonising green standards and rules across sectors and regions, and establishing robust regimes to facilitate climate investments.

     On green finance, Hong Kong continues to be the leading green and sustainable finance hub in the region. In 2024, total green and sustainable debts arranged in Hong Kong exceeded US$84 billion, with green bond issuance accounting for 45 per cent of  Asia's total, topping Asia for seven consecutive years. Indeed, The HKSAR (Hong Kong Special Administrative Region) Government was the first government in the world to issue tokenised green bonds, in multiple currencies and tenors. And we have regularised this arrangement. 

     Beyond financing, Hong Kong is playing a "super connector" role in green standard setting. For example, in January this year, we released the second phase of the Hong Kong Taxonomy for Sustainable Finance. It has incorporated transition activity criteria and adds a new category on climate change adaptation. This gives investors and issuers a clear and scientific reference for financing credible decarbonisation projects in high-emission sectors. 

     We also see the potential on carbon trading. Our country is set to expand its national carbon market to cover all major industrial emitters by 2027. For Hong Kong, there is room to enhance Core Climate, the voluntary international carbon marketplace run by the Hong Kong Exchanges and Clearing Limited (HKEX) for trading carbon credits. For example, expanding its reach to the Greater Bay Area. I look to HKEX to expedite pilot testing on cross-boundary carbon trade settlements, and explore more active collaboration with its counterparts to boost the appeal of the platform.

Green tech

     Technology is important in turning climate ambition into real-world progress. That's why we are working very hard in building a vibrant green tech ecosystem.

     And we are pleased to see that Hong Kong tech start-ups are bringing practical, competitive green solutions to the local and overseas markets. For example, ocean ecosystem restoration technologies and sustainable aviation fuel from recycled materials.

     We are strengthening this ecosystem on multiple fronts. The Government, together with our technology parks, provides financial, operational and professional support to green tech start-ups. For example, in last year's Budget, we established the GreenTech Hub, a dedicated cluster linking over 200 green tech companies with financial institutions, universities and industry partners to help them accelerate the commercialisation of their solutions. 

     At the same time, we are determined to attract more new energy and climate tech companies to Hong Kong. Our Office for Attracting Strategic Enterprises is working on this front. Meanwhile, the Hong Kong Investment Corporation Limited, acting as patient capital, is actively co-investing in and channeling private market capital to support frontier green tech companies, helping these technologies scale and go global.

AI for climate 

     The potential of AI to help combat climate change cannot be underestimated. And this is where Hong Kong can make valuable contributions as well. 

     Here in Hong Kong, AI is a pillar industry in its own right. And we have made "AI+" a core strategy to empower and transform different industries and sectors. 

     As you well know, Hong Kong has strong basic research capabilities. Three of our universities rank among the global top 30 for AI and data science - HKU included of course. We are attracting more world-class talent in this field. We are a convergence point for data from the Mainland and the world. 

     And together with our sister cities in the Greater Bay Area, which have strong industrial clusters and diverse application scenarios, we can enable relevant AI solutions to be tested, refined and deployed at speed.

Talent development 

     We cannot achieve the above ambitions without the right talent. We have talent admission schemes in place and are committed to developing our own professionals, including further strengthening market-relevant curricula and continuing professional development programs in areas such as climate risk management and transition finance.  

     We encourage more young people to pursue careers in innovation and technology, and are happy to provide them with more practice pathways, such as internships and project-based collaboration with companies and start-ups. 

     The Government stands ready to provide the resources to support these efforts. 

Concluding remarks

     Ladies and gentlemen, the climate challenges are immense, but so are the opportunities - provided we act with urgency, strategy and determination. Hong Kong has a strong political will. And we offer not only capital and green technologies, but also the connectivity that bridges markets, talent and ideas that help shape solutions and drive collaboration.  

     That is what makes this forum especially meaningful and impactful. On that note, I wish this forum every success, and all of you the best of health and continued success in the years ahead. Thank you very much.

Ends/Thursday, March 26, 2026
Issued at HKT 12:42

NNNN