Sixty-six trillion dollars.
That’s the staggering amount of USD funding that estimates have shown is needed to transit Asia to carbon neutrality in the coming three decades. This massive financing need was reiterated by Hong Kong Financial Secretary Paul Chan in his remarks at MUFG Hong Kong branch’s 70th anniversary reception recently, where he emphasized the city’s importance in facilitating capital investments into Asia’s climate transition.
How Hong Kong can further leverage its strengths as a flagbearer for Asia’s decarbonization was the subject of lively discussions at the MUFG N0W (Net Zero World) conference that concluded recently in Hong Kong. The session was the latest in a planned series of networking and thought leadership events across APAC that would bring together stakeholders to collectively address the region’s climate challenges.
Whilst blended finance was once again identified as crucial to Asia’s climate cause, what also emerged from discussions was the growing commitment and sense of urgency with which corporates in the city have embraced sustainability. This is reflected in MUFG’s experience: Hong Kong is now one of the most important markets for the bank’s sustainable finance business, contributing almost 40% of its ESG-related loan book in the region for FY2022.
“In Hong Kong, we have seen a growing demand for ESG financing solutions and advisory from local and Chinese corporates. The Hong Kong business sector is very willing to look at embracing ESG solutions more laterally, not solely from a commercial or cost-of-funds standpoint, but in how these can help them meaningfully fulfil their climate vision and objectives,” explained Colin Chen, Head of MUFG’s ESG Finance for APAC.
“Given Hong Kong’s importance as a regional green finance and innovation hub, we will continue to proactively engage all stakeholders here, through important platforms such as MUFG N0W, to harness the city’s strengths in support of Asia’s Net Zero transition,” he added.
Read more about the event on our press release here（721KB）
