Hong Kong will host a chapter of the Glasgow Financial Alliance for Net Zero (GFANZ), the world’s largest coalition of financial institutions committed to the goal of net zero by 2050.
It will join the Japan chapter as part of the broader GFANZ Asia-Pacific (APAC) network launched in June 2022.
As an extension of GFANZ’s APAC network, the Hong Kong chapter will engage and build capacity with financial institutions in Greater China on net-zero efforts, transition planning and scaling transition finance.
It will also work with existing local sustainable finance initiatives to support further progress.
The Hong Kong chapter will enable knowledge sharing, supporting the deployment of GFANZ’s voluntary tools and guidance for the implementation of net-zero commitments.
It will also provide input of local perspectives into GFANZ’s ongoing global work, and connect stakeholders, amplify resources, support research and collaborate with domestic initiatives such as the Hong Kong Green Finance Association.
The Hong Kong chapter will be advised by chief executive of the Hong Kong Monetary Authority, Eddie Yue, who is a member of the GFANZ APAC network advisory board, and Dr. Ma Jun, chairman of Hong Kong Green Finance Association and former co-chair of G20 Sustainable Finance Working Group.
Hong Kong is a cornerstone of global capital markets and a vital link between regional capital and transition finance opportunities, giving it a unique position to support net-zero outcomes.
China has demonstrated strong leadership in global energy transition investment and growth in renewable energy capacity, GFANZ said in a statement.
The nation’s energy transition spending hit $546bn in 2021, according to Bloomberg data, and China was the leader in renewable electricity capacity additions in 2022, responsible for almost half of all global deployment. China was also the largest green bond issuer in 2022.
The GFANZ Hong Kong chapter will be “well positioned to facilitate knowledge exchange and the development of best practice for the necessary, rapid scaling of transition finance globally”, GFANZ said in a statement.
The GFANZ APAC network advisory board, chaired by managing director of the Monetary Authority of Singapore, Ravi Menon, advises the GFANZ APAC network as it works to accelerate the net-zero transition across the region.
Within APAC, GFANZ is supporting the Just Energy Transition Partnerships in Indonesia and Vietnam and leading a regional workstream to provide financial institutions with guidance on facilitating the managed phaseout of coal-fired power plants in the region.
Michael Bloomberg, GFANZ co-chair and UN Special Envoy for Climate Ambition and Solutions, said: “Hong Kong is one of the world’s most important financial centres, a vibrant engine of innovation and a key link between Asia’s growing economies and the global market — and its financial institutions are uniquely positioned to help drive the transition to net zero in Hong Kong, across the region and around the world.
“This new Chapter will play a vital role in our global alliance, and we couldn’t have asked for a better partner than Hong Kong Monetary Authority in this joint effort.”
Mark Carney, GFANZ co-chair and UN Special Envoy for Climate Action and Finance, said: “Home to many of the world’s largest and fastest growing economies, the Asia-Pacific region is central to the world’s efforts to achieve a net zero global economy. And those efforts rely on the availability of large-scale finance.
“The new Hong Kong Chapter will build on GFANZ’s ongoing work in APAC, creating tools and tailored guidance for local financial institutions to support their net-zero transition.”
