HKMA and multilateral organizations aim to enhance strategic partnership for climate investment in Asia.
The Hong Kong Monetary Authority joined hands with multilateral organizations, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and International Finance Corporation (IFC), a member of the World Bank Group, to announce a partnership at the Asia Climate Investment Seminar (on 11 November).
The partnership marks a step towards strengthening cooperation in sustainable finance in Asia.
The partnership serves as a call to action for stakeholders to unite against climate change, with Actis GP LLP being one of the General Partners supporting the initiative, aiming to deploy ‘at least US$500 million in Asia.”
The partners emphasize the importance of a collaborative approach involving partners and institutions to “address sustainability challenges in the region.”
They will focus on investments in sectors that contribute to achieving net zero emissions and reducing “greenhouse gases in the region, including renewable energy infrastructure, energy solutions and sustainable transportation.”
Howard Lee, Chief Executive Officer of the Exchange Fund Investment Office of the HKMA, said that as a green finance hub in Asia, Hong Kong has been facilitating a “significant portion of the region’s international green and sustainable bonds in recent years.”
Suzanne Gaboury, Director General for Private Sector Operations of the ADB, said that developing economies in Asia and the Pacific face significant shortfalls in “climate investments needed to clear the path to green growth.”
Gregory Liu, Director General, Financial Institutions and Funds Clients Department, Global, of the AIIB, said their partnership with the HKMA, ADB, and IFC reflects AIIB’s commitment to “advancing climate-focused investments that drive sustainable growth in Asia.”
As covered, the HKMA is Hong Kong’s central banking institution.
The HKMA’s main functions are as following: (i) maintaining currency stability within the framework of the Linked Exchange Rate System; (ii) promoting the stability and integrity of the financial system, including the banking system; (iii) helping to maintain Hong Kong’s status as an international financial centre, including the maintenance and development of Hong Kong’s financial infrastructure; and (iv) managing the Exchange Fund.
ADB is committed to achieving a sustainable Asia and the Pacific, while maintaining its efforts to eradicate poverty.
The AIIB is a development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond – infrastructure with “sustainability at its core.”
They began operations in Beijing in 2016 and have since grown to 110 approved members worldwide.
They are capitalized at $100 billion and claim to be AAA-rated by the international credit rating agencies.
Collaborating with partners, AIIB meets clients’ needs by “unlocking capital and investing in infrastructure that is green, tech-enabled and promotes regional connectivity.”
IFC — a member of the World Bank Group — is the development institution focused on the private sector in emerging markets.
They work in 100+ countries, using their capital, expertise in order to “create markets and opportunities in developing countries.”
In 2024, IFC committed $56 billion to private companies and FIs in developing countries, “leveraging private sector solutions and mobilising private capital to create a world free of poverty on a livable planet.”
