Financial Secretary Paul Chan, in a speech at the 2025 Hong Kong Green Finance Association (HKGFA) Annual Forum, positioned Hong Kong as a “reliable and resourceful partner” in the global green transition.
He highlighted a “world of contrast,” noting the urgency of climate crises like unprecedented heatwaves and “black rainstorms” against a backdrop of geopolitical challenges, including the U.S.’s withdrawal from the Paris Agreement. This, he stated, complicates the $1.3 trillion annual climate-finance target for developing countries set at COP 29.
Global and domestic climate action:
Chan offered a hopeful perspective by highlighting the progress of other nations. He noted China’s commitment to its 3060 goals, pointing out that its CO₂ emissions fell by 1.6% in Q1 2025—the first such decline led by clean energy expansion despite rapid power demand growth. China is projected to invest $820 billion in energy transition this year, nearly 40% of the global total. The country’s emissions trading scheme now covers 70% of its emissions.
He also cited encouraging progress in Asia, where energy transition investment surpassed $1 trillion last year, and in Belt and Road economies, where renewable energy now constitutes 30% of total energy investments. On a domestic level, Chan affirmed Hong Kong’s commitment to cutting carbon emissions in half by 2035 and achieving carbon neutrality by 2050 through four key strategies: decarbonizing power generation, improving energy efficiency, promoting green transport, and reducing waste. He mentioned plans to increase the share of zero-carbon electricity in Hong Kong’s fuel mix to 35% by 2026, with a goal of reaching 60-70% upon completion of a new clean energy transmission project.
Hong Kong’s role in sustainable finance and innovation:
Chan emphasized Hong Kong’s growing prominence in sustainable finance, providing several key figures:
• Over $80 billion in sustainable debts issued in 2024, with green bonds accounting for 45% of the regional total.
• A 15% year-on-year increase in sustainable debt issuances in the first half of 2025, reaching an estimated $34 billion.
• Over 200 ESG funds authorized by the Securities and Futures Commission, with an AUM exceeding $140 billion, a rise of over 50% in three years.
He announced that the Hong Kong Monetary Authority (HKMA) has begun a public consultation to expand its Taxonomy for Sustainable Finance to include transition finance and climate change adaptation, aligning it with frameworks from mainland China and the European Union.
Beyond finance, Chan highlighted Hong Kong’s emergence as a green technology hub, with over 250 green tech companies in Science Park and Cyberport. He underscored the city’s prioritization of Artificial Intelligence (AI) as a core industry, stating his confidence that AI solutions for decarbonization can scale from Hong Kong to have a global impact.
