International Experiences in Green Finance Development

45 Evolution of Green and Sustainable Finance Policies in Hong Kong Hong Kong’s green finance ecosystem comprises a diverse array of stakeholders, each playing a distinct role in advancing sustainable financial practices. These stakeholders can be broadly categorized into five key types, with specific organizations representing each category and contributing significantly to the growth and development oftheregion’sgreen finance landscape (Table 8). The first category is the Coordination Group, exemplified by the CASG. As previously mentioned, the CASG is co-chaired by the HKMA and the SFC, and it includes representatives from key government departments and financial market institutions such as the ENB, the FSTB, the HKEX, the IA, and the MPFA. This composition effectively represents the interests of both the public and financial sectors. It is noteworthy that while some members of this cross-agency group may also fulfill roles akin to those in the subsequent categories, the primary function of the cross-agency group is distinct. Given that green finance represents a meticulously designed ecosystem, the core emphasis here is on facilitating seamless collaboration among various stakeholders. The second category, Government and Regulatory Agencies, serves as key drivers of its progress. Among these agencies, the HKMA stands out as a key player, primarily responsible for formulating policies and supervising banking activities. The SFC complements the HKMA’s efforts by regulating securities markets and overseeing ESG practices in the financial sector. The ENB actively promotes sustainability initiatives, while the FSTB manages fiscal aspects. Additionally, the IA regulates the insurance industry, and the MPFA handles retirement savings management. Together, these government bodies form the backbone of regulatory oversight and policy implementation in green finance. The third category encompasses Financial Markets and Exchanges, whose primary role within the Hong Kong green finance system is to provide essential services and products. Notable representative institutions within this category include the HKEX, the Bank of China (Hong Kong) Limited, HSBC and the Hang Seng Bank. The HKEX plays a critical role in promoting sustainable practices in the securities market. Meanwhile, banks like the Bank of China, HSBC, and Hang Seng Bank offer specialized green financial services, encouraging environmentally responsible investments. For example, the Bank of China (Hong Kong) has introduced green mortgage loan programs, green loan programs, personal customer green deposit programs, Renminbi ESG funds, and green bonds. The Agricultural Bank of China Hong Kong Branch has established a sustainable bonds framework for issuing green bonds to financing projects with positive environmental and social impacts. The CMB Wing Lung Bank also offers green financial advisory services to corporate customers to assist them in obtaining green finance certification. Independent Certification and Consulting Firms form a critical component of the system, offering specialized certification, advisory, and assessment services. These firms serve as the linchpin for businesses and institutions seeking to align with sustainable and ESG standards. Notable representatives within this category include the HKQAA, CECEP Environmental Consulting Group, Deloitte, and KPMG. Their expertise and services empower organizations to navigate complex sustainability regulations, assess ESG risks, and establish robust practices that meet the evolving demands of responsible finance.