Eddie Yue on Forging a Sustainable Future Together

The 2025 Hong Kong Green Week will kick off in a week's time. Over 60 local and international institutions from both public and private sectors will be hosting more than 40 events, attracting hundreds of international and local policymakers, business leaders, specialists and scholars in sustainability to Hong Kong.

The opening event, 2025 Hong Kong Green Finance Association Annual Forum, will explore strategies for Asia's transition. The cornerstone event, Climate Business Forum: Asia Pacific 2025, will dive into emerging topics such as the role of artificial intelligence in energy transition, sustainable supply chains, biodiversity, and climate resilience. The closing event, the 2025 Green Fintech Symposium, will showcase the award-winning solutions from the 2025 Green Fintech Competition. Alongside these sessions, the Hong Kong Green Week also offers a diverse array of activities, ranging from roundtables and workshops for industry practitioners to exhibitions and expo that engage the public.

Although in some overseas markets the attention to climate issues may seem to have cooled, the success of Hong Kong Green Week in drawing active participation of stakeholders from around the world, especially the in-person attendance and support of global heavyweights, demonstrates the world's ongoing attention to sustainability.

In fact, now more than ever, we need a platform for dialogue and collaboration, to leverage the collective wisdom of all stakeholders to find a balance between socio-economic development and climate action.

Climate change is intensifying. 2024 is the hottest year on record - global temperatures exceeded 1.5°C above pre-industrial levels for the first time. That resulted in extreme weather events, worsening food crises in 18 countries, and displacing hundreds of thousands of people.¹ Climate change will also pose threats to the global economy. Scientists estimate that a 1°C rise in temperature could lead to a 12% decline in global GDP.

Hong Kong feels the impact of climate change first-hand. Following an unusually dry and hot first half of the year, with cumulative rainfall at only 41% of the normal level, Hong Kong has been hit successively by the typhoon signal No. 10, rainstorms and floods since July. The Hong Kong Observatory unprecedentedly issued four black rainstorm warnings in just eight days. Daily life and businesses operations were both affected.

Humanity collectively face the challenges of mitigating climate change and enhancing climate resilience. Nowhere is this more pressing than in the Asia Pacific. On one hand, the region remains heavily reliant on fossil fuels, in particular coal, and is responsible for over half of the world's emissions,² with high emission intensity.³ Temperatures in Asia are rising nearly twice as fast as the global average, with apparent impact on the intensity of the ensuing extreme weather events.⁴ On the other hand, the region is home to many emerging and developing economies, which need to promote socioeconomic development while building up climate resilience.

It is encouraging to see that Asia is steadfast in its climate commitment. For example, China has pledged to submit its 2035 Nationally Determined Contributions (NDC) before the United Nations Climate Change Conference in Belém (COP30), covering all economic sectors and greenhouse gases for the first time. The recent ASEAN Summit adopted the theme of "Inclusivity and Sustainability" and was concluded with the Kuala Lumpur Declaration stating clearly that the ASEAN Sustainable Investment Guidelines would be finalised and adopted within 2025.⁵

Funding is essential to turn commitments into actions. According to market estimates, emerging and developing Asia needs at least an annual investment of US$1.1 trillion for climate mitigation and adaptation, but the actual investment falls short by US$800 billion.⁶ Asia needs a mature and robust sustainable finance ecosystem to effectively mobilise capital and facilitate sustainable investment while enabling the industry to capture opportunities and manage climate risks. This is also why the Hong Kong Monetary Authority (HKMA) launched our Sustainable Finance Action Agenda (Action Agenda) in 2024 - to leverage Hong Kong's position as the region's sustainable finance hub to contribute to sustainable development in Asia and beyond.

During the implementation of our Action Agenda, we have observed a number of positive trends and sought to help the industry seize the opportunities presented. First, the sustainable debt market in Asia has maintained strong growth momentum, attracting increasing interest from European and American investors. In 2024, green and sustainable debt (including bonds and loans) issuance in Hong Kong totalled US$84.4 billion, up 61% from the previous year. Of this, green and sustainable bonds arranged in Hong Kong amounted to US$43.1 billion, with around 80% of the issuers from the private sector. The sustainable debt market in Hong Kong has continued to see solid growth this year, with estimated issuances in the first half of 2025 reaching US$34.3 billion, a year-on-year increase of 15%.

In addition, technological developments have created new possibilities for sustainable finance. For example, tokenisation can help the bond markets, including green and sustainable bonds, improve efficiency, reduce cost, increase transparency, and facilitate investor participation. The HKMA assisted the Hong Kong Special Administrative Region Government in issuing two batches of tokenised green bonds in 2023 and 2024. We have managed to shorten the settlement cycle from the traditional T+5 to T+1. We have also integrated the Green Bond Framework, third-party assessment reports, and other green bond documents with the digital assets platform, improving transparency and accessibility of information. We are actively exploring the application of tokenisation technology in other areas of sustainable finance, such as carbon credit markets, where technological advancements may help enhance the efficiency of cross-border transactions and internationalise various local carbon credit markets. The relevant proof-of-concept is underway, with the test report expected to be completed this year.

We also recognise that many areas in sustainable finance have untapped potential. For example, Asia's sustainable investment market has room for growth in both depth and breadth. In this regard, the public sector can lead by example, demonstrating with its own investments that financial returns and sustainability objectives can go hand in hand, helping scale up sustainable investments. For instance, in November 2024, the HKMA collaborated with several multilateral organisations⁷ to form a strategic partnership, committing at least US$500 million to climate projects in Asia, including renewable energy infrastructure, energy solutions, and sustainable transportation, etc. In June 2025, the HKMA signed a strategic partnership agreement with the Asian Infrastructure Investment Bank to co-invest in venture capital funds that focus on emerging Asia. To facilitate cross-border investment, the HKMA will take into account compatibility and comparability with taxonomies in other regions when developing the next phase of the Hong Kong Taxonomy for Sustainable Finance. In addition, we need to continue to raise awareness of sustainable investment among asset owners, such as sovereign funds, pension funds, family offices, foundations, etc. Hong Kong Green Week presents a timely opportunity to do just that.

During Hong Kong Green Week, representatives from global financial institutions and corporates will gather in Hong Kong to share insights on sustainable finance and practical experiences in emerging fields. They will also explore issues related to the real economy to seek opportunities amid changes.

We look forward to fruitful exchanges among participants, turning visions into actions. We also hope that Hong Kong Green Week will continue to serve as a platform for the sustainable development of the Asia-Pacific region, bringing together stakeholders from different sectors to forge a sustainable future for all.

Eddie Yue
Chief Executive
Hong Kong Monetary Authority

3 September 2025