The International Finance Corporation (IFC) has partnered with the Hong Kong Monetary Authority (HKMA) to encourage the participation of banking institutions in Asia in climate action initiatives.
IFC and the Hong Kong Monetary Authority (HKMA) will encourage commercial banks in Asia to adopt strategies and targets to become greener.
HKMA will be the hub for green finance for commercial banks in Asia under the Asian Chapter of the Alliance for Green Commercial Banks.
IFC and HKMA will, over the next five years, bring together financial institutions, banking industry associations, research institutions, and innovative technology providers to develop, build, and boost the capacity for green finance and promote climate investments.
Programmes will be launched to undertake green finance research, provide unique market insight, tailor capacity building/training support, and provide practical guidance for banks.
IFC estimates that cities in emerging markets alone have the potential to attract more than $29 trillion in climate action projects by 2030. The Asia-Pacific region has the highest climate-smart investment potential of any region in the world.
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Eddie Yue, the chief executive of the HKMA, said: “The HKMA is keenly aware that a global collective effort is required to combat climate change, and that the financial sector will play a crucial role in developing green and sustainable finance.
“It is our great honour to join hands again with IFC on the Alliance for Green Commercial Banks, and share the same mission to support financial institutions on their green transition to become leading green banks, whilst contributing towards global efforts to tackle climate change.”
Stephanie von Friedeburg, interim managing director of IFC, said: “The HKMA’s vision and continued progress towards making Hong Kong SAR a prominent Green Finance hub for Asia, makes it the ideal inaugural partner to mainstream green finance in Asia. “IFC’s work on greening financial systems in Asia has already achieved significant impact, which will make our joined forces a global model for green financing possibilities.”