Building a World Top Green and Sustainable Bond Hub

30 Hong Kong’s Transition Towards a Green and Sustainable Finance Center: Building a World Top Green and Sustainable Bond Hub Hong Kong is facing a series of challenges in its aim of becoming a top green and sustainable bond hub. Such a market is still in its emerging stage in the city. To become the world’s leading green and sustainable financial center, the design of the corresponding roadmap must keep pace with the latest international developments, as well as combine Hong Kong’s greatest strength in connecting the East and the West. It should also be innovative, taking into account the city’s emission reduction goals, legal system, and market characteristics. In addressing the above-mentioned problems in standard design, Hong Kong should play an active role in connecting the standards of different regions, rather than just a passive role in recognizing multiple standards. Regarding human capital and infrastructure, Hong Kong needs to be based on the structure of its own talent pool and the characteristics of the existing financial market infrastructure. However, the city should build a green talent pool according to local conditions. It also needs to upgrade its green finance market infrastructure. Table 3: Hong Kong’s Roadmap for a Green and Sustainable Bond Hub Challenge Near-term action Mid- to long-term plan Fragmented taxonomy To enact technical guideline for adopting CGT On the basis of adopting the CGT, design a HK-labelled taxonomy framework that offers guidelines to harmonize different regional green taxonomies. Incompatible green bond standards Actively participate in international communication. First comply with international green bond standards and then take steps to integrate these or take a more proactive role in the international standards board. Double pressure in external review Enlarge the coverage of the eligible group for the Green and Sustainable Finance Subsidy Scheme. Support issuers’ subsidization for external review and improve the regulatory mechanism of external review. Manpower shortage Enlarge the coverage of the eligible group for the Pilot Green and Sustainable Finance Capacity Building Support Scheme. Outline the characteristics of the talents needed for developing a green bond hub. Provide incentives to attract and cultivate these talents. Gradually build up a talent pool for a green finance center.