Hong Kong Sets Ambitious 2025 Agenda to Shape the Future of Sustainable Finance

Key Takeaways

• Sustainability Disclosure Focus: The Green and Sustainable Finance Cross-Agency Steering Group is prioritizing the creation of a robust sustainability disclosure ecosystem, aligning with international standards (ISSB), and providing support for companies to meet global sustainability reporting requirements.
• Hong Kong as a Hub for Sustainable Finance: Efforts are underway to establish Hong Kong as a leader in sustainable finance, including expanding the Hong Kong Taxonomy for Sustainable Finance to include transition activities and developing guidance for financial institutions to manage transition finance effectively.
• Carbon Trading Ambitions: Hong Kong aims to become the regional leader in carbon trading within Asia-Pacific, leveraging its financial strengths and preparing for COP29 by fostering collaboration and capacity-building in the carbon market.
• Green Fintech & Technology Integration: The Steering Group is launching the Hong Kong Green Fintech Map to highlight innovative green fintech solutions, while also providing businesses with tools to track emissions and assess climate risks, with a focus on accessibility for SMEs.

Deep Dive

Hong Kong’s financial ecosystem is getting a major sustainability makeover. The Green and Sustainable Finance Cross-Agency Steering Group (let’s call it the Steering Group for short) has set its sights on ambitious goals for 2025, and today, we’re getting a peek into the game plan.

At a meeting earlier today, the Steering Group laid out three major priorities that will shape Hong Kong’s future as a leader in sustainable finance. If you're wondering what that means for the financial industry – and the environment – it’s all about making big strides in sustainability disclosure, enhancing the city's green finance credentials, and using tech to drive smarter, greener decisions.

The first priority is creating a robust sustainability disclosure ecosystem. This goes beyond just putting out a few numbers. With the Hong Kong Special Administrative Region (HKSAR) Government's Roadmap on Sustainability Disclosure now in play, the Steering Group is gearing up to help businesses hit the global standard for sustainability reporting – and do it right.

By aligning with the International Financial Reporting Standards (ISSB) Sustainability Disclosure Standards, Hong Kong will be setting a new benchmark for transparent and consistent reporting. But it’s not just about meeting a threshold – it’s about making sure companies get the support they need to navigate the process, from providing technical assistance on reporting to creating an assurance framework that ensures these disclosures are trustworthy.

Making Hong Kong a Hub for Sustainable Finance

Next up? Making sure Hong Kong doesn’t just keep up with the sustainable finance race – but leads it. The Steering Group is working to bolster Hong Kong’s position as the go-to hub for green and transition finance in the region.

One way they’re doing this is by expanding the Hong Kong Taxonomy for Sustainable Finance, incorporating not just green but also transition activities. In other words, they’re thinking about the big picture: not just projects that are already green, but the projects that are on the path to becoming greener. Plus, they’re developing practical guidance for financial institutions to start making transition finance work in real-world scenarios.

And here's where it gets even more interesting, the Steering Group wants Hong Kong to be the go-to place for carbon trading in the Asia-Pacific region. With COP29 casting a long shadow over climate goals, Hong Kong is looking to capitalize on its geographical and financial strengths to become a carbon trading powerhouse, with big plans for regional collaboration and capacity-building.

Data, Tech, & Green Fintech

Finally, we’re talking tech – because what’s the point of all this progress if we don’t have the right tools to track it? The Steering Group is rolling out the Hong Kong Green Fintech Map, a tool that will show off all the green fintech solutions popping up in the city. This is expected to be a game-changer when it comes to mobilizing sustainable capital. Whether it’s blockchain, AI, or data analytics, green fintech is set to turbocharge sustainable finance by enhancing transparency and streamlining information flows.

But that’s not all. They’re also continuing to improve tools for businesses to calculate their greenhouse gas emissions and assess their climate risks – and they’re making sure these tools are freely available for all, especially small and medium-sized enterprises (SMEs). After all, sustainability reporting should be something that every company can access, not just the big players.

A Collective Effort

The Steering Group is a powerhouse of collaboration. Co-chaired by the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), it includes key players like the Environment and Ecology Bureau, the Insurance Authority, and Hong Kong Exchanges and Clearing Limited. Together, these agencies are working to address climate and environmental risks, all while accelerating the growth of green and sustainable finance across the region.

As 2025 progresses, the Steering Group's work will continue to shape Hong Kong’s sustainable finance landscape. With a mix of regulatory oversight, industry collaboration, and cutting-edge fintech, the city is poised to become a major global player in the green finance space.

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