Source: Hong Kong Government special administrative region
Report on “Navigating the Green Shift: Opportunities and the Evolving Landscape of Transition Finance”
The report reviews the global transition finance landscape, examining the importance of multistakeholder collaborations and international best practices in preventing greenwashing and maintaining transparency. Based on a survey and in-depth interviews commissioned by the HKIMR, the study captures insights from a diverse range of global stakeholders – including financial institutions and multilateral organisations – offering a detailed analysis of the current state, emerging trends, and future trajectory of the international transition finance ecosystem.
The study reveals a clear momentum in transition finance, with 60 per cent of survey respondents already either active in or exploring transition finance developments. Among a diverse range of financial instruments, equity and fund investments as well as debt instruments were the most commonly used tools to channel capital towards transition projects. As the ecosystem progressively matures, a gradual shift towards more specialised instruments is anticipated. Respondents further observed that collaborative models, including blended finance approaches, can draw in private capital by enhancing the risk-return profiles of investments in transition projects.
The study also indicates that market outlook is cautiously optimistic, with 74 per cent of respondents anticipating a stable or growing global transition finance market over the next three years. Positive sentiment is most pronounced in the Asia-Pacific region, where 91 per cent of respondents expected stability or growth. Finally, the study outlines several considerations, including maintaining a high level of regulatory and policy clarity, and deepening regional collaborations, to support the development of a vibrant transition finance ecosystem in Hong Kong.
The Chief Executive Officer of the AoF and Executive Director of the HKIMR, Mr Enoch Fung, said, “By facilitating informed dialogues, cross-boundary collaborations, and continued innovation, Hong Kong can further reinforce its role as a leading sustainable finance hub and contribute to the long-term goals of climate resilience and sustainable economic development. This report offers actionable insights in consolidating Hong Kong’s existing strengths in green and sustainable development.”
The report
About the AoF
About the HKIMRIssued at HKT 14:00
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