International Experiences in Green Finance Development

38 International Experiences in Green Finance Development: Lessons for Hong Kong The inception of Hong Kong’s green finance policy can be traced back to the signing of the Paris Agreement. In response to this, the ENB released the Hong Kong’s Climate Action Plan 2030+ (Table 7) in January 2017, calling for not only government action but also active involvement and contributions from businesses and the broader community. Subsequently, in February 2018, the government took a significant step towards stimulating the development of Hong Kong’s green finance sector by launching the GGBP. In his 2018-19 Budget announcement, the Financial Secretary of the HKSAR revealed plans for the GGBP, with a borrowing ceiling of HK$100 billion (approximately US$12.8 billion). This initiative aimed to demonstrate the government’s commitment to promoting green finance and transforming the HKSAR into a more sustainable and liveable city. Under the impetus of the Hong Kong government’s issuance of sovereign green bonds, the green finance sector has experienced notable growth. Introduced by the HKMA in June 2018, the GBGS was designed to provide financial support to eligible green bonds issuers seeking certification under the GFCS established by the HKQAA. Lastly, in September 2018, the SFC unveiled the Strategic Framework for Green Finance. This strategic framework, also aligned with the goals of the Paris Agreement, aimed to achieve various objectives. These included enhancing corporate disclosures related to climate issues in accordance with the recommendations of the TCFD, developing policies and guidance for asset managers to prevent misleading green claims, facilitating the growth of green- related investments, raising investor awareness and capacity in green finance, and actively participating in international sustainability initiatives to position Hong Kong as a global hub for green finance. In 2020, the development of green and sustainable finance in Hong Kong took a significant leap forward with the establishment of the CASG and the release of its strategic plan. In May 2020, the CASG was established in Hong Kong, marking a significant milestone in the city’s commitment to advancing green finance and sustainability. Co-chaired by the Hong Kong Monetary Authority (HKMA) and the SFC, the CASG boasts a diverse membership that includes key government bodies and regulatory authorities, such as the ENB, the FSTB, the HKEX, the Insurance Authority (IA), and the Mandatory Provident Fund Schemes Authority (MPFA). Together, they are entrusted with the vital task of coordinating efforts to address climate and environmental risks within the financial sector, accelerating the growth of green and sustainable finance in Hong Kong, and aligning with the government’s overarching climate strategies. Then on December 17, 2020, the CASG unveiled a strategic blueprint for Hong Kong’s financial landscape, aptly named the Strategic Plan to Strengthen Hong Kong’s Financial Ecosystem to Support a Greener and More Sustainable Future (the Strategic Plan). This comprehensive plan features six key focus areas and includes five near-term action points. The specific details are as follows: Following the establishment of the CASG and the release of the Strategic Plan, Hong Kong’s green finance has witnessed substantial advancements. Firstly, a greater number of government departments have actively engaged in the development of Hong Kong’s green