International Experiences in Green Finance Development

48 International Experiences in Green Finance Development: Lessons for Hong Kong comprehensive system for nurturing talent specific to the green finance domain. In recognition of the urgency to enhance Hong Kong’s green finance capacity, the Center for Green and Sustainable Finance, operating under the CASG, introduced the “Pilot Green and Sustainable Finance Capacity Building Support Scheme” in October 2022. This initiative aims to bolster talent development within the green finance sector by subsidizing training and facilitating the acquisition of professional qualifications. However, a notable limitation is that the “Pilot Green and Sustainable Finance Capacity Building Support Scheme” primarily engages recognized teaching institutions from international organizations such as the International Capital Market Association (ICMA), Global Association of Risk Professionals, Inc., and the CFA Institute, with comparatively limited involvement from Mainland Chinese institutions. To address this issue effectively, the scheme could benefit from forging partnerships with specialized teaching institutions within the GBA, leveraging their profound understanding of the current state of green finance development in Mainland China. Turning to green classification standards, there is an imperative to expedite progress in this area. These standards serve as the backbone of the green finance market, providing the much- needed clarity on which assets and projects align with green finance criteria. Unified green classification standards not only attract more investments but also bolster investor confidence. In relation to this, Hong Kong has taken commendable steps towards establishing green classification standards. In December 2020, the strategic plan was unveiled, and one of the Five Near-term Action Points was to “Aim to adopt the Common Ground Taxonomy (CGT)”. More recently, in May 2023, the HKMA released a Discussion Paper on the Prototype of a Green Classification Framework for Hong Kong. The overarching goal is for this Framework to be embraced locally, creating a standardized structure for classifying and labeling financial products and investments based on their environmental sustainability. Additionally, the Green Classification Framework is envisioned as an analytical tool to facilitate comparisons with green activities defined by the EU and China’s taxonomies. Despite these commendable efforts by the Hong Kong government, the critical nature of green classification standards demands a sense of urgency in advancing these initiatives. By accelerating progress in these key areas—establishing robust ecosystem connectivity, enhancing talent development mechanisms, and expediting the adoption of green classification standards—Hong Kong can better harness the opportunities offered by the GBA region and further solidify its position as a global leader in green finance.