Yuen links climate finance growth to standards and bank planning
Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), set out Hong Kong's sustainable finance priorities at One Earth Summit. They include an expanded taxonomy, finalised bank transition-planning guidelines and banking disclosure requirements under development.
Standards extend to physical risks
The Phase 2B prototype of Hong Kong's sustainable finance taxonomy covers 39 mitigation activities and 28 adaptation measures.
It includes battery manufacturing and recycling, low-carbon technologies and protection against flooding, storm damage and shoreline risks.
Yuen cited 14 tropical cyclones and five Black Rainstorm Warnings in Hong Kong in 2025.
The HKMA has finalised transition-planning guidelines to help banks manage climate risks and support clients' transition.
Its cloud-based platform helps banks assess clients' asset vulnerabilities and adaptation needs.
Banking disclosure requirements remain under development, aiming to make information more reliable and comparable.
These measures implement the Sustainable Finance Action Agenda launched in 2024.
Capital meets regional exposure
Since 2019, the Government Sustainable Bond Programme has issued nearly HK$280 billion in green bonds for over 110 government projects.
Hong Kong has led Asia in arranging international green and sustainable bonds for eight consecutive years.
Asia accounts for over 60 percent of global greenhouse gas emissions and nearly 60 percent of clean-tech investment.
It supplies roughly 80 percent of solar modules and 65 percent of batteries.
Low-lying areas hold roughly 13 percent of Asia's urban population; 13 of the world's 20 largest cities are coastal.
Standards must mobilise capital
Yuen put global mitigation finance needs at three to four times current flows.
Developing-country adaptation needs are 12 to 14 times current international public finance flows.
His agenda pairs common standards with bank risk management, disclosures and technology to connect capital with climate-resilient projects.