International Experiences in Green Finance Development

53 Lessons Learned from the Leading Green Finance Centers for Hong Kong modes have not been observed in the case of New York, a good environment that allows information to flow freely has been deeply valued. If a place has not yet owned an environment like this, then creating a mechanism to facilitate information flow and enhance communication is critical. The inherent development model in Hong Kong is market-driven. Poor communication and insufficient coordination between the public and private sectors on green transformation of the SAR’s financial system are impeding the city’s long-term development. The Hong Kong government should establish a real coordination mechanism either through the CASG or other platforms to organize efforts towards green transition. The coordination mechanism needs to balance the roles of government and the market. Regular meetings that invite stakeholders from both public and private sectors should be organized. Working groups with different purposes at different levels should be formed to create solutions to problems which emerge in the process of enhancing green and sustainable finance. Through such a coordination mechanism and related activities, stakeholders can gradually increase their professional understanding of the risks and opportunities presented by green finance. Participants may also positively influence and cooperate with their peers. “Fit for purpose” policy analysis workshops can be arranged in the working groups to narrow the gap between policy commitments and actual results. 6.3 The System: Build a Diversified System of Green Financial Products and Tools, Establish Information Disclosure and Green Classification Standards, and Promote Information Transparency and Consistency The practical experience of Singapore, London and New York shows that, on the one hand, the construction of a green financial product system can take the form of diversified tradable instruments, thereby broadening financing channels for green industries and meeting the needs of more investors. For example, scenario analysis can help companies conduct risk assessment, opportunity identification and stress testing. Transition plans can provide organizations with a strategic roadmap to achieve their sustainability goals. On the other hand, since the normal operation of themarket relies heavily on information, this requires stakeholders to jointly improve the information collection and disclosure system to ensure transparency and consistency, such as creating databases, models, information disclosure and green classification standards, etc. The MAS has been promoting green financial products and projects to meet the growing demand for sustainable investments. The Singapore government regards the green bonds market as the next growth point. It leads its development internally and actively cooperates with other ASEAN countries externally. Singapore is also focusing on fintech tools to predict possible future problems and develop solutions in advance. At the same time, the city-state is committed to creating strict regulatory approaches and industry-led standards to ensure information transparency and consistency. Specifically, in order to avoid greenwashing issues, the Singapore government has implemented strict regulations on all green financial products, including green bonds. In order to reduce the problem of financial fraud, it has also set up a reporting hotline to urge companies to truthfully report carbon emission data and pay corresponding costs. At the same time, Singapore promotes the development of industry standards and taxonomies based on local and industry plans. For example, the MAS convened