Hong Kong Green Finance Association Supports 2022 Hong Kong SAR Budget Speech
HONG KONG, February 24, 2022 /PRNewswire/ — In Budget Speech 2022-23 by Paul Chan Mo-PoFinancial Secretary of the Hong Kong Special Administrative Region, suggests that the development of green and sustainable finance in hong kong continues to be a key initiative to support that of Hong Kong net zero program as well as the country’s “3060” target for peak carbon emissions and carbon neutrality.
Dr. MA Jun, Chairman and Chairman of HKGFA, expresses his support for the green and sustainable finance initiatives announced in the Hong Kong SAR Government Budget Speech 2022-23
Dr MA Jun, Chairman and President of the Hong Kong Green Finance Associationstates that “the successful issuance of more than $7 billion equivalent of green bonds under the government’s green bond program demonstrates the confidence of global investors in that of Hong Kong the economy and its green initiative. The government’s commitment to issue green bonds totaling $4.5 billion this year, the planned retail green bond issuance and expansion of the green and sustainable finance grant program, as announced today in the finance secretary’s budget speech, will further strengthen the role of hong kong as an international hub for green finance. In particular, government subsidy through the Green Loan Verification Grant Program has been an innovation in hong kongand will be part of international best practice.”
“We are particularly excited about the launch of the Green and Sustainable Capacity Building Support Pilot Program, which is critical to bridging the talent gap and helping to retain and attract green finance professionals in hong kong. The Hong Kong Green Finance Association (HKGFA) is pleased to support the government’s efforts in this regard. HKGFA has already made plans to work with government and educational institutions to launch training programs on green finance and ESG investing. We will also work through the Greater Bay Area Green Finance Alliance to facilitate international investors’ access to quality green projects in mainland China and explore options for mutual recognition of green finance products in the GBA area. »
Read the full budget speech
Excerpt from the budget speech on green and sustainable finance:
77. We are committed to promoting the development of retail bonds for the benefit of the public. I plan to issue no less than $15 billion inflation-indexed retail bonds (ie iBond) and no less than $35 billion of Silver Bond over the next financial year, with a view to offering the public, in particular the elderly, investment options with regular returns. Details of the first batch of retail green bonds for public subscription were announced last week. Members of the public can invest directly in green projects that provide environmental benefits to jointly create a green environment for green living in hong kong while earning regular inflation-linked returns. I plan to continue broadcasting no less than $10 billion retail green bonds over the next fiscal year.
83. The development of green and sustainable finance in hong kong offers promising prospects. By leveraging our advantages as an international financial center, we can facilitate the matching of international capital with quality green projects, proactively contribute to helping our country achieve its “3060 target” for peak energy. carbon emission and carbon neutrality, as well as to propel hong kong towards our goal of carbon neutrality by 2050 and promote the green transformation of our economy.
84. Since the launch of the Government Green Bond Program in 2018, a total of more than 7 billion US dollars equivalent green bond targeting global institutional investors was successfully issued. Several milestones were achieved, including the issuance of a 30-year US dollar-denominated green bond and a 20-year euro-denominated green bond, both of which are the first issuance among Asian governments, and have established an important benchmark for the flourishing development of the bond market in hong kong. The successful issuance of RMB green bonds by the Shenzhen Municipal Government in hong kong set an example for GBA cities to make good use of the hong kong green finance market. He also strengthened that of Hong Kong operates as an offshore RMB hub and green financial hub. This year, we will continue to issue green bonds for a total of approximately US$4.5 billion or equivalent.
85. Green and sustainable finance Grant program launched last year has been well received by the industry. Over 50 applications have been approved to date, covering various types of green and sustainable debt instruments. Of the applications approved, many were for grants to cover external review costs related to green and sustainable lending. To help businesses access green finance, we will lower the minimum loan amount by $200 million for $100 million with regard to applications for grants to cover external examination costs under the scheme.
128. Considering the new development trend of low-carbon and sustainable economy, we plan to launch a three-year green and sustainable finance capacity building support pilot program. Under this scheme, grants will be provided for training and the acquisition of relevant professional qualifications, in order to encourage practitioners from the financial sector and other relevant sectors to participate in the training.
About the Hong Kong Green Finance Association
Founded in September 2018Hong Kong Green Finance Association (HKGFA) provides a unique platform that supports the development of green finance and sustainable investments in hong kong and beyond. It aims to mobilize the resources and talents of the public and private sectors in the development of green finance policies, to promote green finance activities and product innovation within financial institutions. The main objective of HKGFA is to position hong kong as an international hub for green finance by providing better access and opportunities for that of Hong Kong financial institution to participate in green finance transactions locally, in mainland China and in markets along the Belt and Road. This is in line with the global trend towards implementing the United Nations Sustainable Development Goals and the Paris Agreement.
HKGFA’s main activities are organized into eight working groups, namely Green and Sustainable Banking, Green and Sustainable Private Equity, Green and Sustainable Real Estate, Green Bonds and Product Innovation, Disclosure and ESG Integration, Policy Research and Dissemination, Green and Sustainable Insurance, and External Collaborations. Please visit https://www.hkgreenfinance.org/ for more information
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