Report on "Navigating the Green Shift: Opportunities and the Evolving Landscape of Transition Finance"
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), today (April 17) released a new Applied Research report, titled "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 is available on the AoF/HKIMR website.
About the AoF
The AoF is set up with full collaboration amongst the Hong Kong Monetary Authority, the Securities and Futures Commission, the Insurance Authority and the Mandatory Provident Fund Schemes Authority. By bringing together the strengths of the industry, the regulatory community, professional bodies and the academia, it aims to serve as (i) a centre of excellence for developing financial leadership; and (ii) a repository of knowledge in monetary and financial research, including applied research.
About the HKIMR
The HKIMR is the research arm of the AoF. Its main remit is to conduct research in the fields of monetary policy, banking and finance that are of strategic importance to Hong Kong and the Asia region. The Applied Research studies undertaken by the HKIMR are on topics that are highly relevant to the financial industry and regulators in Hong Kong, and they aim to provide insights on the long-term development strategy and direction of Hong Kong's financial industry.
Source: AI-found images
Report on "Navigating the Green Shift: Opportunities and the Evolving Landscape of Transition Finance" Source: HKSAR Government Press Releases
