International Experiences in Green Finance Development

46 International Experiences in Green Finance Development: Lessons for Hong Kong Research and Education Institutions play a pivotal role within the Hong Kong green finance ecosystem, contributing significantly to its overall capacity-building efforts. Among these institutions, those focusing on Research and Degree Education include the University of Hong Kong’s School of Professional and Continuing Education and the HKUST Business School. They are instrumental in advancing the knowledge and skills needed to drive sustainable financial practices by offering comprehensive degree programs and conducting research to inform innovative financial solutions. In addition, the system benefits from Research and Training providers such as the CFA Institute, the Hong Kong Sustainable Development Research Institute, and the Hong Kong Institute of Education for Sustainable Development. These organizations further bolster the ecosystem by offering specialized training and research programs, ensuring a continuous supply of well-equipped professionals and researchers who can contribute to the development and implementation of green financial strategies, thus enhancing the system’s capacity for sustainability. Non-Profit Industry Associations within the system, like the HKGFA and the Greater Bay Area Green Finance Alliance Working Group, play a pivotal role in fostering collaboration and networking among academia, industry, and various stakeholders. These associations act as advisory bodies, akin to think tanks, by convening experts and practitioners from diverse backgrounds. Their efforts promote knowledge sharing, idea exchange, and the development of best practices in green finance. By acting as a bridge between different sectors, they facilitate the cross-pollination of ideas and the formulation of policies that support sustainable finance initiative s . 5.2 Challenges Hindering the Growth of Green Finance in Hong Kong 5.2.1 Unclear Market Positioning Leads to Insufficient Top-level Design Hong Kong’s financial landscape is undergoing a profound transformation. Once a financial powerhouse, the city now stands at a critical crossroads, facing a multitude of formidable challenges. Against the backdrop of a rapidly shifting global landscape marked by multipolarity and a rebalancing of international relations, trade tensions persist between the world’s two largest economies, China and the United States, further complicating the situation. The global COVID-19 pandemic has accelerated these changes, pushing Hong Kong, a vital intermediary in East-West economic interactions, to the brink of crisis. In this evolving context, Hong Kong’s financial institutions are increasingly reliant on Mainland Chinese funds, with Mainland capital and investors emerging as the primary clientele for Hong Kong’s financial services. This transition not only reflects the changing dynamics of Hong Kong’s financial market but also underscores the city’s evolving role within the global financial landscape. Hong Kong is gradually reorienting its focus toward the domestic Mainland market, aiming to rebuild its status as a global financial hub by leveraging investments from Mainland China. In this backdrop, Hong Kong’s strategy for developing green finance should be centered on maximizing opportunities in Mainland China, especially within the Greater Bay Area (GBA). This