The Hong Kong Monetary Authority (HKMA) has signed a new partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to encourage commercial banks in Asia to adopt strategies and targets to become greener, according to a joint statement from both entities.

As the founding member and first regional anchor for the Asia Chapter of the Alliance for Green Commercial Banks – a new initiative launched by IFC to help develop green commercial banks and encourage more green finance in order to address climate change – the HKMA will serve as the hub for green finance among commercial banks in Asia.

Under the agreement, over the next five years, the HKMA and IFC will bring together financial institutions, banking industry associations, research institutions and innovative technology providers from across Asia to develop, build and boost the capacity for green finance and promote climate investments.

The HKMA and IFC will jointly launched targeted initiatives and campaigns in the region to undertake green finance research, provide unique market insight, tailor capacity building/training support and provide practical guidance for banks in order to develop their own roadmap to mainstream green finance as their core business and revamp existing green financial products and services.

IFC estimates that cities in emerging markets have the potential to attract at least $29trn in climate-related investments by 2013, according to the statement.