US Nonprofit Initiatives Propel Hong Kong and Dubai Towards Sustainable Finance Goals
Enhancing Sustainable Finance Collaboration
Banking authorities in Hong Kong and Dubai are strengthening their ties to promote sustainable finance, pledging to attract more investments to address climate change. The Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) signed a memorandum of understanding (MOU) on Monday to cement their partnership on the matter, pledging to enhance cross-border dialogue, deepen information exchange and explore ways to contribute more to the green bond market.
Climate change is a global challenge that requires a collaborative response, HKMA CEO Eddie Yue Wai-mun stated at the Climate Finance Conference in Hong Kong. Hong Kong and Dubai can and should do more together. We cannot afford to wait for a perfect approach.
Recent Developments in Climate Finance
The MOU follows a partnership established in December when both regulators agreed to further develop policy and regulatory responses to support climate finance. Global climate finance has been on the rise, climbing to about US$1.3 trillion in 2021, as reported by the Climate Policy Initiative.
- Annual flows need to reach US$8.5 trillion by 2030 to avert severe global warming.
- Both cities share vulnerabilities to climate impacts, particularly after events like Super Typhoon Yagi.
Hong Kong's green bond market skyrocketed to US$15.6 billion in 2023, indicating a 353 percent increase from the previous year. Meanwhile, Dubai aims for net-zero emissions by 2050, with specific strategies for enhancing sustainable finance.
Future Directions
Both financial hubs are committed to improving transparency, resilience against climate risks, and developing interoperable green taxonomies. As we pursue net-zero targets, said DFSA CEO Ian Johnston, building strong partnerships is crucial.
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.