Green Bonds and Sustainable Financing: Dubai and Hong Kong Unite for a Better Future

Friday, 20 September 2024, 09:31

Green bonds are crucial as Dubai and Hong Kong collaborate to enhance sustainable financing regulations. This initiative aims to position both financial hubs at the forefront of climate funding, paving the way for robust investment in environmental projects across Asia-Middle East. The Climate Bonds Initiative supports these efforts, promoting a unified approach to sustainable finance.
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Green Bonds and Sustainable Financing: Dubai and Hong Kong Unite for a Better Future

Green Bonds: A Key Financial Initiative

Dubai and Hong Kong are jointly adapting capital market regulations to facilitate green bonds issuance and listing, aiming to elevate both cities as primary sources of funds for climate-friendly projects.

Sustainable Finance Collaboration

The cooperation between the Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA) represents a strategic move to align regulatory frameworks that support sustainable finance. Ian Johnston, CEO of DFSA, emphasizes the regulators' role in enabling finance that aligns with government green agendas.

Boosting the Asia-Middle East Corridor

Data shows that companies raised US$15.6 billion through green bonds in Hong Kong last year, ranking it as a major market for such securities. Meanwhile, Dubai is accelerating its efforts to enhance sustainable finance, ensuring it catches up.

Facilitating International Flows

  • Harmonizing green taxonomies: Efforts to create seamless green financing will instill confidence across both markets.
  • Islamic finance integration: Enabling Shariah-compliant green bonds could unlock significant capital for projects.
  • Learning from Hong Kong's established sustainability reporting regime can enhance Dubai's capacities.

Johnston noted the importance of formalizing cooperation to facilitate regulatory support for green financing initiatives.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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