HONG KONG – August 31, 2023 – Today, the Glasgow Financial Alliance for Net Zero (GFANZ), the world’s largest coalition of financial institutions committed to the goal of net zero by 2050, announced Hong Kong will host a GFANZ Chapter, joining the Japan Chapter as part of the broader GFANZ Asia-Pacific (APAC) Network launched in June 2022.

As an extension of GFANZ’s APAC Network, the Hong Kong Chapter will engage and build capacity with financial institutions in Greater China on net-zero efforts, transition planning and scaling transition finance, working with existing local sustainable finance initiatives to support further progress.

The Hong Kong Chapter will enable knowledge sharing, supporting the deployment of GFANZ’s voluntary tools and guidance for the implementation of net-zero commitments, as well as providing input of local perspectives into GFANZ’s ongoing global work. It will also connect stakeholders, amplify resources, support research and collaborate with domestic initiatives such as the Hong Kong Green Finance Association.

The Hong Kong Chapter will be advised by Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, who is a member of the GFANZ APAC Network Advisory Board, and Dr. Ma Jun, Chairman of Hong Kong Green Finance Association and former Co-Chair of G20 Sustainable Finance Working Group.

Hong Kong is a cornerstone of global capital markets and a vital link between regional capital and transition finance opportunities, giving it a unique position to support net-zero outcomes. China has demonstrated strong leadership in global energy transition investment and growth in renewable energy capacity. The nation’s energy transition spending hit $546 billion in 2021, and China was the leader in renewable electricity capacity additions in 2022, responsible for almost half of all global deployment. China was also the largest green bond issuer in 2022 and its green financing levels reached $2.3 trillion in 2023. The GFANZ Hong Kong Chapter will therefore be well positioned to facilitate knowledge exchange and the development of best practice for the necessary, rapid scaling of transition finance globally.

The GFANZ APAC Network Advisory Board, chaired by Managing Director of the Monetary Authority of Singapore Ravi Menon, advises the GFANZ APAC Network as it works to accelerate the net-zero transition across the region. Within APAC, GFANZ is supporting the Just Energy Transition Partnerships in Indonesia and Viet Nam and leading a regional workstream to provide financial institutions with guidance on facilitating the managed phaseout of coal-fired power plants in the region.

Michael R. Bloomberg, GFANZ Co-Chair and UN Special Envoy for Climate Ambition and Solutions: “Hong Kong is one of the world’s most important financial centers, a vibrant engine of innovation and a key link between Asia’s growing economies and the global market — and its financial institutions are uniquely positioned to help drive the transition to net zero in Hong Kong, across the region and around the world. This new Chapter will play a vital role in our global alliance, and we couldn’t have asked for a better partner than HKMA in this joint effort.”

Mark Carney, GFANZ Co-Chair and UN Special Envoy for Climate Action and Finance: “Home to many of the world’s largest and fastest growing economies, the Asia-Pacific region is central to the world’s efforts to achieve a net zero global economy. And those efforts rely on the availability of large scale finance. The new Hong Kong Chapter will build on GFANZ’s ongoing work in APAC, creating tools and tailored guidance for local financial institutions to support their net-zero transition.”

Eddie Yue, GFANZ Asia-Pacific Advisory Board member and Chief Executive of the Hong Kong Monetary Authority: “I would like to extend a warm welcome to the new GFANZ Hong Kong Chapter. With Hong Kong’s unique role as a gateway to Mainland China and our vibrant green finance ecosystem, I am confident that the Chapter will contribute meaningfully to GFANZ’s efforts in building capacity among financial institutions in this part of the region, to support their net-zero transition.”

Ma Jun, Chairman of Hong Kong Green Finance Association (HKGFA): “Transition finance will be the next big theme for sustainable finance development globally, especially in Asia. Effective delivery of transition finance solutions requires collective efforts to raise awareness and develop tool and methodologies.  HKGFA warmly welcomes the launch of the new GFANZ Hong Kong Chapter, and is looking forward to working with the chapter to build capacity within the financial sector in Hong Kong SAR, mainland China, and the Asia region broadly.”

Mary Schapiro, GFANZ Vice Chair: “I am delighted to see our efforts expanding further into the APAC region through the GFANZ Hong Kong Chapter. This Chapter reflects the crucial role that Greater China plays in shaping the path forward towards a net-zero global economy. By building capacity and supporting net-zero implementation efforts among financial institutions, while amplifying and building on local initiatives, we hope to encourage progress and catalyze alignment across the entire ecosystem.”

Ravi Menon, GFANZ Asia-Pacific Advisory Board Chair and Managing Director of the Monetary Authority of Singapore: “GFANZ APAC warmly welcomes the Hong Kong chapter, which joins the recently launched Japan Chapter to accelerate an inclusive and just transition to net zero in the Asia-Pacific. As a major international financial centre, Hong Kong is well placed to build capabilities among financial institutions in Greater China to set ambitious climate goals, draw up credible transition plans, and promote green and transition financing in the region.”