Building a World Top Green and Sustainable Bond Hub

3 Contents Executive Summary 4 1. Hong Kong Should Develop a Roadmap to Support the Vision of 5 Becoming a Top Green Finance Center that Connects China and the West 1.1 Strong Policy Support for Hong Kong to Develop a Top-tier Green Finance 6 Center with the Bond Market as a Focus 1.2 Hong Kong’s Advantages in Developing a Top-tier Green Finance Center 7 2. Building a World Top Green and Sustainable Bond Hub 9 2.1 Green Bond is the Most Prominent Instrument for Green Finance 10 2.2 Hong Kong’s Flourishing International Green and Sustainable Bond Market 14 2.3 Becoming a Green and Sustainable Bond Hub is Strategic for 20 Hong Kong’s Transition towards the Green and Sustainable Financial Center 3. Challenges for Hong Kong’s Transition Towards the Green and 21 Sustainable Bond Hub 3.1 The Regionally Diversified Green Taxonomy 22 3.2 The Compatibility of Green Bond Standards 23 3.3 The Dual Pressure in External Review 25 3.4 Manpower Shortage 26 3.5 Insufficient Infrastructure 27 4. A Roadmap for Hong Kong as a Green and Sustainable Bond Hub 29 4.1 Action 1: Utilize the CGT to Come Up with a Hong Kong-labelled Framework 31 Providing Guidance Regarding Harmonizing Taxonomies 4.2 Action 2: Play a Proactive Role in Designing an Integrated Framework 33 for Green Bond Principles 4.3 Action 3: Increase Incentives for Green Bond Issuance 34 4.4 Action 4: Attract More Talent with a Clear Skill Framework 35 4.5 Action 5: Strengthen Infrastructure with Fintech 36 Abbreviations 37 References 38