The Green and Sustainable Finance Cross-Agency Steering Group, a collaborative effort between the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), has unveiled its strategic priorities for the year. These initiatives aim to bolster sustainable finance practices within the region. The group's efforts focus on implementing international standards, expanding the taxonomy for sustainable finance, and fostering green fintech development. By addressing these areas, the Steering Group seeks to position Hong Kong as a leader in sustainable finance within the Asia-Pacific region.

In an effort to align with global sustainability standards, the Steering Group plans to introduce the ISSB Standards in Hong Kong. This will be achieved through providing technical support, establishing a robust framework for sustainability assurance, and launching educational programs in collaboration with industry stakeholders. The implementation of these measures is expected to enhance transparency and consistency in sustainability reporting across various sectors.

To further expand the scope of sustainable finance, the Steering Group intends to broaden the Hong Kong Taxonomy to encompass transition activities and new sustainable ventures. Sector-specific guidelines on transition finance will be published, and a Transition Finance Knowledge Hub will be launched online. Moreover, the group aims to establish Hong Kong as a carbon trading hub by engaging stakeholders and initiating regional training programs, thereby promoting environmental sustainability in the financial sector.

Supporting innovation in green fintech, the Steering Group plans to introduce the Hong Kong Green Fintech Map in the first half of 2025. This initiative will facilitate the development of green fintech solutions. Additionally, enhancements to public data tools, such as greenhouse gas emissions calculators and climate risk assessment questionnaires for small and medium enterprises (SMEs) and non-listed companies, will improve sustainability reporting and data accessibility. These measures are designed to empower businesses with the necessary tools to make informed decisions regarding their environmental impact.

Established in May 2020, the Steering Group continues to drive forward sustainable finance practices in Hong Kong. Through its comprehensive approach, the group aims to create a more resilient and environmentally conscious financial ecosystem. By focusing on standardization, expansion, and innovation, the Steering Group is paving the way for a sustainable future in the region's financial landscape.