The roadmap aims at quality of assurance and transition plans as well as increased the use of technology.
The Green and Sustainable Finance Cross Agency Steering Group of Hong Kong has outlined its strategic priorities in the period between 2026 and 2028, aiming at two core priorities, namely: consolidating Hong Kong current positive sides in sustainable finance and building capabilities in the new ones like transition and adaptation finance.
In the following three years, the group will target sustainability disclosure improvements, such as assurance and quality transition plan disclosure and encourage the use of technology.
The Hong Kong Monetary Authority and the Securities and Futures Commission are the co-chairs of the Steering Group. It has members such as the Financial Services and the Treasury Bureau, the Environment and Ecology Bureau, the Insurance Authority, the Mandatory Provident Fund Schemes Authority, the Accounting and Financial Reporting Council and Hong Kong Exchanges and Clearing Limited.
It also intends to increase the market of sustainable finance by supporting capital flows via Hong Kong and enhancing cross-border carbon market cooperation. External interaction via world conferences and discussions, talent development and capacity building will also be increased.
The group plans to roll out transition finance in emerging regions by providing functional guidelines, tools and case studies to increase industry-wide implementation of transition planning.
It will also help develop the adaptation finance by enhancing market preparedness, finding gaps in capability, facilitating product development, and enhancing physical risk evaluation.
Julia Leung, who is the co-chair of the Steering Group and chief executive of the Securities and Futures Commission, commented that the new priorities are because Hong Kong concentrated on remaining relevant to the global standards and market demands.
She affirmed that better disclosures and scaling of transition finance are the main ways to facilitate transparent and credible results throughout the financial system.
Co-chair and chief executive of the Hong Kong Monetary Authority Eddie Yue stated that the sustainable finance market in Hong Kong has achieved great achievements in the past few years.
He claimed that the new priorities will create a stronger ecosystem and assist the city to grasp the opportunities that are associated with the shift of Asia to the low-carbon and climate-resilient economy.