International Experiences in Green Finance Development

47 Evolution of Green and Sustainable Finance Policies in Hong Kong entails supporting Hong Kong in its endeavor to establish itself as a green finance hub within the GBA. The significance and benefits of this strategy are evident, as the GBA is considered one of Mainland China’s most vibrant and promising regions, with expansive markets and abundant resources. Positioning Hong Kong as a green finance hub within the GBA will enable it to better serve this vast market and meet the growing demand for green finance. However, the current strategic plan suffers from an unclear market positioning, resulting in an inadequate top-level design for green finance. Presently, Hong Kong’s green finance strategy relies on the Strategic Plan published by the CASG. This plan encompasses six key areas and five near-term action points, covering climate risk management, information promotion, skills and awareness, innovation, and capital flow, GBA opportunities, and global collaboration. The near-term action points include mandatory TCFD disclosures by 2025, adopting a common taxonomy, supporting IFRS, promoting climate scenario analysis, and creating a regulatory hub platform. While this strategic plan comprehensively addresses critical aspects of the green finance market, it falls short of refining the top-level design of Hong Kong’s green finance development strategy in alignment with its current position in the global financial landscape. Hong Kong needs a more clearly defined market positioning to ensure that its green finance strategy remains adaptable and effectively addresses the evolving global financial environment. Only through a well-defined market positioning can Hong Kong achieve sustainable growth in the green finance sector and maintain competitiveness amidst these unprecedented global changes. 5.2.2 Supporting Measures Lag Behind Similarly, Hong Kong’s current measures to support green finance remain behind the curve, missing out on the opportunities presented by the GBA region. This gap is particularly evident in the lack of robust connectivity within the overall ecosystem and the challenges faced in key areas like talent development and green standards. To start, the overall ecosystem in Hong Kong lacks awell-established network of collaboration and communication among stakeholders in the green finance sector. For instance, despite Hong Kong being home to numerous institutions dedicated to green finance research and education, including prominent names like the University of Hong Kong School of Professional and Continuing Education and the HKUST Business School, as well as organizations such as the CFA Institute, the Hong Kong Sustainable Development Research Institute, and the Hong Kong Institute of Education for Sustainable Development, there remains a significant gap in fostering synergies between these educational and research institutions and the financial market. Efforts to bridge this gap and facilitate seamless information exchange are still in their nascent stages. Furthermore, in the realm of talent development, which is a cornerstone of green finance growth, Hong Kong faces certain challenges. Cultivating a skilled workforce in the green finance sector is paramount for its sustainable development. High-caliber professionals well-versed in green finance can drive innovation and provide essential support to institutions and markets. While Hong Kong boasts a strong foundation in higher education, it has yet to establish a