International Experiences in Green Finance Development

8 International Experiences in Green Finance Development: Lessons for Hong Kong 1.1 Background The emergence of green finance has garnered significant attention from policymakers worldwide, leading to a flurry of policy initiatives aimed at promoting sustainable finance. A noteworthy aspect of this trend is the inclination of policymakers from various nations not only to recognize green finance as an urgent global issue but also to engage in mutual learning, fostering the development of a more comprehensive global framework for green finance policies. In this global surge towards green finance, the United Kingdom, as the first nation globally to legislate its commitment to achieve net-zero emissions by 2050, has also been actively dedicated to advancing green finance. The Green Finance Strategy was initially released in 2019, with its core focus on financial greening, financing greening, and seizing opportunities. The latest update of the green finance strategy, released in March 2023 as Mobilizing Green Investment, aims to position London as the world’s first net-zero financial center, further solidifying the UK’s global leadership in the field of green finance and investment. The United States, having rejoined the Paris Agreement in 2021 and embarked on active Climate Diplomacy through multilateral mechanisms such as the United Nations, G7, and G20 under the Biden administration, has yet to undergo a comprehensive overhaul of its green finance policy framework. The core of its policy system traces back to the 1980 Comprehensive Environmental Response, Compensation, and Liability Act, also known as the Superfund Law, with a primary focus on environmental remediation and greenhouse gas emissions control. Consequently, this policy framework is also applicable to climate risk prevention and management. Collectively, the policy measures adopted by these regions underscore the fact that green finance has become a pivotal driving force for global sustainable development. Governments worldwide are actively responding to these imperatives, dedicating themselves to further advancing and implementing green finance to address the increasingly pressing global environmental challenges. Hong Kong can actively draw upon the successful experience of other international financial centers, proactively adopting advanced green financemodels and policy frameworks to promote the vibrant development of the local green finance ecosystem. Such knowledge sharing and experience absorption will aid Hong Kong in better aligning with global green finance trends and nurturing the healthy growth of its green finance ecosystem. Through close collaboration and experience exchange with the international community, Hong Kong has the potential to make rapid strides in the field of green finance, contributing more significantly to the cause of sustainable development and enhancing its global competitiveness as an international financial center. Simultaneously, China, a significant participant in the global green finance arena, has been actively driving the development of green finance. China’s green finance policy system has been enhanced in its carbon peak and carbon neutrality dual targets. These dual targets are top-level systematic planning and deployment of efforts to achieve carbon peak and carbon neutrality. They encompass the development of green finance as a means to expand financial support and investments.