HKMA Partners with Global Institutions for Climate Investment in Asia

The Hong Kong Monetary Authority (HKMA) has announced a strategic partnership with several multilateral organizations to bolster climate investment initiatives across Asia. This collaboration was revealed at the Asia Climate Investment Seminar held on November 11, 2024, according to the Hong Kong Monetary Authority.

Strategic Collaboration for Sustainable Finance

The HKMA has joined forces with the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and the International Finance Corporation (IFC), a member of the World Bank Group, to strengthen efforts in sustainable finance in Asia. This partnership aims to deploy at least US$500 million in investments focused on sectors pivotal to achieving net zero emissions. Key areas include renewable energy infrastructure, sustainable transportation, and innovative energy solutions.

Leadership and Vision

Howard Lee, CEO of the Exchange Fund Investment Office at HKMA, emphasized Hong Kong's role as a leading green finance hub in Asia. He noted the city's significant contribution to international green and sustainable bonds, asserting that strategic partnerships are crucial for demonstrating the feasibility of aligning financial returns with sustainable development.

Suzanne Gaboury, Director General for Private Sector Operations at ADB, highlighted the region's urgent need for climate investments to foster green growth. ADB, serving as the climate bank for Asia, is increasing its climate financing efforts and collaborating with like-minded partners to fund impactful development projects.

Commitment to Climate Action

Gregory Liu, Director General of AIIB’s Financial Institutions and Funds Clients Department, expressed AIIB's commitment to advancing climate-focused investments. He stressed the importance of the partnership in accelerating Asia's transition to a low-carbon economy, thereby laying a strong foundation for significant climate action and regional resilience.

Kim-See Lim, Regional Director for East Asia and the Pacific at IFC, acknowledged the challenges posed by climate change in Asia. She emphasized the importance of channeling capital into climate projects, which are essential for fostering an inclusive transition to low-carbon growth.

Role of Actis in the Initiative

Actis GP LLP, a general partner supporting the initiative, aims to play a crucial role in this partnership. Shami Nissan, Partner and Head of Sustainability at Actis, underscored the significance of Asia in achieving a net zero future, given its rapid industrialization and substantial contribution to global emissions.

Background on Partner Organizations

HKMA serves as Hong Kong's central banking institution, focusing on maintaining currency stability, financial system integrity, and managing the Exchange Fund. The ADB and AIIB are key players in regional development, with missions centered on sustainable growth and infrastructure financing. IFC, part of the World Bank Group, is the largest global institution focused on private sector development in emerging markets, while Actis specializes in sustainable infrastructure investments.