Good practices of green finance in Southeast Asia

The speaker, a prominent figure at the Hong Kong Monetary Authority (HKMA), emphasized the importance of green and sustainable finance during the Hong Kong Green Week 2026. She highlighted how the ripples of green finance initiatives, such as the Hong Kong Taxonomy for Sustainable Finance, can travel from regulators to financial institutions, corporates, and individuals, ultimately impacting the real economy.

The HKMA has been actively involved in promoting green finance through various initiatives. One such initiative is the public consultation for Phase 2B of the Taxonomy, which provides clear definitions of green, transition, and adaptation activities. This tool enables financial institutions to work with their clients to identify investment opportunities and channel capital towards sustainable development.

The speaker also discussed the bank's efforts to raise awareness and strengthen banks' readiness for climate change. This includes providing high-level guidance, sharing good practice, and developing guidelines that make client engagement central to the process. Additionally, the bank is embedding transition planning efforts into its Supervisory Review Process.

To address the challenge of data gaps in disclosing climate-related risks, the HKMA has launched a Physical Risk Assessment Platform and built practical tools, such as a GHG emissions calculator and sustainability questionnaires. These tools help banks and their clients better understand and manage climate-related risks, turning abstract risks into measurable opportunities.

The speaker emphasized the importance of financing and creating broader ripples of impact. Hong Kong has been a regional leader in arranging international green and sustainable bonds for eight consecutive years. The HKMA plans to expand the Taxonomy to further incentivize financing and drive sustainable development across Asia and beyond.

Technology and collaboration were cited as key catalysts in amplifying the impact of green finance initiatives. Green fintech, powered by technology, enables banks to manage climate risk and identify new investment opportunities at a scale unattainable through manual processes. The HKMA also collaborates with international partners, such as the Asian Infrastructure Investment Bank, to invest in venture-capital funds supporting innovative technologies and business models for green infrastructure across Asia.