The Government announced today (March 25) that the Financial Secretary, in exercise of the authority under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) delegated to him by the Chief Executive, has reappointed Miss Queen… read more
Following are the luncheon remarks by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the One Earth Summit today (March 25):
Poman (Founder of the Institute of Sustainability and Technology, Professor Poman Lo), Mr Tsao (Chairman of IMC Pan Asia Alliance Group, Mr Chavalit Frederick Tsao), distinguished guests, ladies and gentlemen,
Good afternoon.
A warm welcome to all of you from around the world to Hong Kong, a vibrant city, for addressing the crucial task of safeguarding the sustainability of our Earth. I am sure you all have had a fantastic and thought-provoking day so far, with interesting discussions and sharing of ideas on sustainability, finance, and global collaboration.
Before I start, I would like to thank today’s organiser, the Institute of Sustainability and Technology, for organising today’s wonderful event which also serves to kick-start our Financial Mega Event Week covering a series of top-tier international conferences and exhibitions taking place in Hong Kong. These include the highly acclaimed Wealth for Good in Hong Kong Summit exclusively for our family offices; and the Global Investors’ Symposium organised by the Milken Institute, the first large-scale summit held in Hong Kong by the Institute since 1998. On the arts and culture side, we also have the annual Art Basel Hong Kong show to be held near the end of the week. So your choice to visit the city this week is timely and wise, as you will definitely experience the vitality and vibrancy, as well as the international and multicultural qualities of Hong Kong.
Turning back to the theme of today’s summit on sustainability, as the Principal Official of Hong Kong Special Administrative Region (HKSAR) Government covering the development of financial services, let me share with you Hong Kong’s efforts in promoting green and sustainable finance development. First and foremost, I am proud to announce that the HKSAR Government is today issuing a vision statement on developing the sustainability disclosure ecosystem in Hong Kong.
With heightened worldwide awareness on sustainable development, it has become vital to ensure that accurate, consistent and relevant information about sustainability-related matters is available for investors and other market participants to manage risks and support investments. The International Sustainability Standards Board (ISSB) published in June 2023 its first set of International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) as the global baseline for entities around the globe to prepare comparable, consistent and reliable climate and sustainability-related information, and make sustainability disclosures focusing on the needs of investors and the financial markets. Our vision is to be among the first jurisdictions to align the local sustainability disclosure requirements with the ISSB Standards, as we consider it essential to showcase our commitment to reinforcing Hong Kong’s leading position on the international sustainable finance map and solidifying the competitiveness of businesses in Hong Kong to address the global demand for sustainability disclosure. To transform this vision into concrete actions, we will launch a roadmap within this year to provide a transparent and well-defined pathway on sustainability reporting for businesses in Hong Kong.
We will adopt a holistic approach which includes phased implementation of the local sustainability disclosure requirements for all financial services sub-sectors, including listed companies and all regulated financial institutions, such as banks, fund managers, insurance companies, and Mandatory Provident Fund trustees, etc. Publicly accountable entities such as listed companies and regulated financial institutions will be prioritised to apply the local standards, taking into account their preparedness and capabilities.
The ecosystem will also cover sustainability assurance to enable credible implementation and capacity building to support industry and companies. We will also facilitate the use of technological solutions to improve data availability and support data collection and reporting. To this end, we have recently launched a set of greenhouse gas emissions calculation and estimation tools for public access free of charge. They refer to internationally recognised standards, while also integrating elements and data specific to Hong Kong and Mainland China in their calculation and estimation models. We have also recently promulgated an online questionnaire which serves as a reporting template for our non-listed companies and small and medium-sized enterprises to assist their sustainability reporting processes.
Talking about green finance innovation, let me also highlight our achievements and new initiatives to further promote its development. Under the Government Green Bond Programme, we have successfully issued Government green bonds totalling US$25 billion equivalent so far, which include the world’s first tokenised government green bond issued in early 2023, and the world’s first multi-tranche digitally native green bonds issued just last month, in addition to the traditional institutional and retail green bonds. We will also launch a dedicated proof-of-concept subsidy scheme for green fintech in the first half of this year to provide early-stage funding support for green fintech, facilitating commercialisation and fostering the development of new green fintech initiatives.
Ladies and gentlemen, the above are just a few examples to showcase Hong Kong’s leading position as an international and regional green finance hub. With the concerted efforts of the Government, our financial regulators, industry and other stakeholders, we have seen rewarding results. The annual issuance of green and sustainable debt instruments in Hong Kong has seen remarkable growth in the last few years, expanding from just US$12 billion in 2020 to more than US$80 billion in 2022, a six-fold increase in just two years. In 2022, the volume of green and sustainable bonds arranged in Hong Kong topped the Asian market, accounting for 35 per cent of the market. We will continue to leverage our unique position as an international financial centre that connects capital flows between economies across the Asia-Pacific region, with unparalleled connectivity to the Mainland and contribute to the green transition of the world’s economy.
As a collective force, we have the power to make a real difference and create a world of sustainable practices. I want to express my gratitude once more for your active involvement, and I wish all of you a day filled with success and fruitful outcomes.
Thank you, and let’s continue our journey towards global sustainability together.
The following is issued on behalf of the Legislative Council Secretariat:
The Legislative Council (LegCo) will hold a meeting on Wednesday (March 27) at 11am in the Chamber of the LegCo Complex. During the meeting, Members will debate a motion on further consolidating Hong Kong’s advantages as an international city. The motion, moved by Mr Rock Chen, is set out in Appendix 1. Dr Hoey Simon Lee will move an amendment to Mr Chen’s motion.
Mr Andrew Lam will also move a motion on reviewing the Long Term Housing Strategy to shorten the home ownership ladder. The motion is set out in Appendix 2. Dr Chow Man-kong, Mr Tony Tse, Mr Kenneth Leung, Mr Stanley Ng and Mr Louis Loong will move separate amendments to Mr Lam’s motion.
Meanwhile, the Secretary for Financial Services and the Treasury will move a proposed resolution under section 18(1) of the Business Registration Ordinance to resolve that the Business Registration Ordinance be amended. The proposed resolution is set out in Appendix 3.
Members will also ask the Government 22 questions on various policy areas, six of which require oral replies.
The agenda of the above meeting can be obtained via the LegCo Website (www.legco.gov.hk). Members of the public can watch or listen to the meeting via the “Webcast” system on the LegCo Website. To observe the proceedings of the meeting at the LegCo Complex, members of the public may call 3919 3399 during office hours to reserve seats. read more
Following is the speech by the Financial Secretary, Mr Paul Chan, at the First Annual Hong Kong Climate Forum – Greater Bay Area Climate Action and Cooperation today (March 25):
Professor Zhang (President and Vice-Chancellor of the University of Hong Kong, Professor Zhang Xiang), Professor Gong (Vice-President and Pro-Vice-Chancellor (Academic Development) of the University of Hong Kong, Professor Gong Peng), distinguished speakers and guests, ladies and gentlemen,
I am delighted to join you today at the First Hong Kong Climate Forum. This is a golden opportunity to discuss and advance our shared commitment to a sustainable future. On behalf of the Hong Kong SAR Government, a very warm welcome to you all, especially to our friends from around the world; from Beijing, the Greater Bay Area, California, and elsewhere. Also, my sincere thanks to Governor Newsom of the State of California, who will speak to us via video.
This international gathering is a vivid reminder that, wherever we may live, we all share the same “home” – planet Earth. Our planet is in peril as climate change continues to gather pace. We must all act together with urgency to protect our beautiful home.
Last week, the World Meteorological Organization (WMO) confirmed that 2023 was the hottest year on record by clear margin. In the words of UN Secretary General Antonio Guterres, “Never have we been so close to the 1.5° C lower limit of the Paris Agreement on climate change.” Rising sea levels and extreme weather events have become regular items on the evening news. No country, no politician can say that we shouldn’t be worried about global warming.
As the WMO rightly puts it, “The cost of climate inaction is higher than cost of climate action.”
Fortunately, there is a beacon of hope with energy transition becoming a top priority for many countries and governments. I am proud to say that our country, China, is at the forefront of this transition, and Hong Kong is ready and able to play its full part.
Speaking at the United Nations General Assembly in September 2020, President Xi Jinping announced China’s commitment to achieving peak carbon emissions before 2030 and carbon neutrality before 2060. Green transition has been deeply engraved in China’s overriding principle of governance and the pursuit of high-quality development.
Our country’s progress has been remarkable. Through substantial investment in green energy, infrastructure and manufacturing, China has brought benefits to itself and other members of the global community. Today, close to half of the world’s installed photovoltaic capacity is in China. China also accounts for around 70 per cent of the global production of lithium batteries. And new energy vehicles, NEVs, are a bright spot. Last year, the Mainland’s NEV production reached more than 9.5 million, an increase of around 36 per cent year on year. Our country has been the world’s largest NEV producer for nine years in a row. It is also a major player in driving the world’s green transition process.
Here in Hong Kong, we are committed to achieving carbon neutrality by 2050. As part of that commitment, we are striving to halve our carbon emissions by 2035, as compared to the 2005 level. We are doing this through four main strategies: net-zero electricity generation, green buildings, green transport, and waste reduction.
Climate finance
An essential dimension of global green transition is funding. Global climate finance flows reached around US$1.3 trillion in 2021/22. However, it is estimated that annual climate investments would have to reach US$9 trillion by 2030 and US$10 trillion by 2050.
In other words, there is a huge funding gap to fill. And this is an area where Hong Kong can make valuable contributions as Asia’s green financing centre. Green bonds issued in the Hong Kong market account for more than one-third of Asia’s total. We serve bond and debt issuers, public and private, from the Mainland, Asia and around the world. And we have been rolling out new and experimental financial products such as tokenised green bonds and securitisation of green projects.
Hong Kong also possesses high-quality professional services that play a significant role in promoting international green standards. Apart from green project certification, we are aligning our standards with the Common Ground Taxonomy adopted by the Mainland and the EU.
Later today, we will issue a vision statement on developing a sustainability disclosure ecosystem, a forceful commitment of the HKSAR Government and financial regulators to formulating a set of local sustainability reporting standards aligned with the IRFS (International Financial Reporting Standards) Sustainability Disclosure Standards published by the International Sustainability Standards Board.
Green technology
Alongside funding, green technology is another key to green transition. Innovative solutions, be they energy saving technologies, new materials for eco-friendly products or carbon sequestration, would transform, reduce or even revolutionise our environmental impact. In this regard, Hong Kong has strong basic research capabilities – five of our universities, the University of Hong Kong (HKU) included, are among the global top 100.
Our Science Park and Cyberport are home to about 200 green-technology companies, including some that are equipped with globally competitive technologies and have successfully tapped into Mainland and overseas markets. Let me give you a couple of examples.
A start-up from Science Park has developed the world’s first 3D reef tiles to help restore underwater habitats for threatened marine life. The company has successfully expanded into the Middle East market.
Another start-up from Cyberport has been pioneering the establishment of mobile decentralised farms in dense cities. It has expanded into Thailand and Australia.
There are more such examples. But in a nutshell, green tech and green finance are a unique value proposition of Hong Kong. And what is most encouraging is that Hong Kong, along with the rest of the Greater Bay Area (GBA), is fast rising as an international innovation and technology hub. Indeed, the GBA is rapidly becoming a region that has the combined advantages of the San Francisco Bay and the New York Bay Areas.
A call for action
Ladies and gentlemen, last Saturday (March 23), Hong Kong joined cities around the world in marking the annual Earth Hour. This is a valuable event to raise awareness of the climate peril that threatens our home. But giving an hour of our time for the Earth each year is not enough. We all need to be 100 per cent committed to a sustainable future for our home, your home.
With such an influential international audience here, allow me to take this opportunity to share my humble views on what we need to do together as we embark on the road to a green future.
First, we live in a highly connected world where climate events have global impact. We need to put political differences and upheavals aside and work together to address urgent climate change issues. If we don’t share the responsibility to act now, we will surely share the consequences of inaction later. We must act in concert.
Second, finance and technology are key forces driving green transition. Nothing should stop us from facilitating international financial and technological co-operation on green matters, nor should there be international trade barriers or restrictions on green products or goods such as new energy vehicles. It does no good to consumers, no good to the higher objective of green transition. Collaboration and fair competition will help us achieve a better planet future.
My heartfelt congratulations to the Institute for Climate and Carbon Neutrality of the HKU for organising this forum. I look forward to the enlightening discussions, best practices sharing and collaborations to be forged.
I wish you all a very fruitful forum and our visitors a memorable stay here in Asia’s world city. Thank you.
The Leisure and Cultural Services Department is inviting proposals from local performing artists and art groups for the Community Cultural Ambassador Scheme (CCAS) 2025. Selected artists and art groups will bring performing arts to … read more