Financial Secretary Paul Chan published a blog today (Sept. 14), stating that one of the key activities for this year's "Hong Kong Green Week" is the Asia Venture Philanthropy Network (AVPN) Global Conference 2025, which has attracted over 1,500 leaders from fields such as philanthropy, impact investing, and sustainable finance to Hong Kong. The lively atmosphere reflects Hong Kong's position as an international financial center and a leading hub for green and sustainable finance in Asia, particularly in the field of "impact investing."
Chan mentioned that it has been ten years since the United Nations proposed the "2030 Agenda for Sustainable Development" in 2015. The funding gap for the 17 goals related to climate action, affordable clean energy, poverty eradication, and reducing inequalities remains vast. Faced with a global funding gap in the trillions, no country or region can rely solely on government and charitable organizations for full financing; private market participation is essential. This is one of the reasons why "impact investing" has gained increasing global attention in recent years.
He noted that the scale of funds managed by "impact investing" was estimated to reach USD16 trillion last year and is expected to grow to USD60 trillion by 2031. The key challenge is how to efficiently connect "impact capital" with quality projects that have social significance. Chan highlighted that Hong Kong, as an international financial center, can contribute in three areas.
First, he mentioned building a thriving ecosystem for "impact investing." Hong Kong has gathered numerous family offices, charitable organizations, and foundations, as well as regional and international impact investing networks. It is essential to promote collaboration among stakeholders, encourage cross-sector interactions, and connect them with socially beneficial projects to maximize efficacy and impact.
Chan continued that Hong Kong can assist in establishing internationally trusted standards and regulations to facilitate investment. For instance, in green and sustainable finance, developing internationally recognized project classifications, financial reporting, and disclosure standards can help solidify investors’ confidence in target projects and reduce communication costs across sectors and regions.
Chan also stated that Hong Kong can contribute to driving more product innovations. As a leader in green and sustainable finance in Asia, Hong Kong must provide innovative products beyond just quantity to meet the developmental needs of different countries and regions. The Hong Kong Monetary Authority is exploring how tokenization can improve the issuance and trading of carbon credits through the Ensemble sandbox project, aiming to enhance liquidity and depth in the carbon market.
Chan emphasized that the government will continue to work hand in hand to enrich Hong Kong's financial services ecosystem, making this international financial center more vibrant and influential, contributing significantly to the country’s financial power, humanity's quality of life, and sustainable development worldwide.
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