Friday, July 19, 2024

Hong Kong: Poised to be a Green Technology and Green Finance Hub

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Chan: HK has Potential to Become Major Green Technology Center

Hong Kong is on a strategic path to becoming an international hub for green technology and green finance, leveraging its abundant advantages, according to Financial Secretary Paul Chan Mo-po. The city has become a magnet for green technology companies and top-tier talents, alongside a growing presence of green funds and financial products, setting the stage for a vibrant economic transformation.

Chan revealed that the Hong Kong Special Administrative Region Government has committed over HK$800 million ($102 million) in grants supporting numerous research, development, and pilot initiatives. These efforts are focused on net-zero power generation, energy-saving green building practices, and green transportation. Currently, Hong Kong is home to more than 200 green technology companies, with some achieving significant international competitiveness and market success.

“The rise of green technology offers practical solutions for global green transitions, driving economic growth and opening new opportunities,” Chan commented. On the finance front, green and sustainable debt instruments arranged or issued in Hong Kong surpassed $80 billion in 2022, claiming 35 percent of the Asian market share. Notably, both the Shenzhen and Hainan governments have launched renminbi denominated green and sustainable bonds in Hong Kong, signaling a positive trend in green finance.

To further this momentum, Hong Kong SAR will inaugurate its very first “Hong Kong Green Week” towards the end of February. This event aims to enhance cross-sector collaboration in green technology and finance, positioning Hong Kong as a pivotal global platform. A highlight of Green Week will be a green technology forum and a series of roundtable discussions, designed to showcase the innovations of numerous startups in the green tech sector.

In parallel, the Hong Kong Monetary Authority is collaborating with the International Finance Corporation of the World Bank Group to host a three-day business forum. This forum will convene political and business leaders along with industry stakeholders from the Asia-Pacific region, fostering in-depth dialogues on finance’s role in the green transition.

The renewed global focus on combating climate change, as evidenced from the 2015 Paris Agreement to the recent 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), underscores the importance of transitioning to a green economy. Chan emphasizes that despite challenges such as geopolitical tensions, high interest rates, and inflation, investments in clean energy transformation are flourishing. Last year alone, global investment in this sector hit a new high of $1.77 trillion, marking a 17 percent increase from the previous year, highlighting the relentless pursuit of renewable energy and green transformation initiatives.

Hong Kong’s strategic initiatives and its pivotal role in green technology and finance not only contribute to the global green transformation but also open up new development avenues for the city and the broader Asian region. With its efficient financing platforms and technological advancements, Hong Kong is well-positioned to lead and accelerate the green transformation process, promising a future that is both sustainable and economically prosperous.

Alex Sterling
Alex Sterlinghttps://www.businessorbital.com/
Alex Sterling is a seasoned journalist with over a decade of experience covering the dynamic world of business and finance. With a keen eye for detail and a passion for uncovering the stories behind the headlines, Alex has become a respected voice in the industry. Before joining our business blog, Alex reported for major financial news outlets, where they developed a reputation for insightful analysis and compelling storytelling. Alex's work is driven by a commitment to provide readers with the information they need to make informed decisions. Whether it's breaking down complex economic trends or highlighting emerging business opportunities, Alex's writing is accessible, informative, and always engaging.

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