Decarbonising Hong Kong: seminar outlines green finance strategies
A public dissemination seminar entitled "Estimation of Financed Emissions in Hong Kong and Policy Recommendations Final Report" was held on 11 April 2024 in hybrid mode. The seminar was organised by the Research Centre for Sustainable Hong Kong (CSHK) and the Department of Public and International Affairs (PIA) and supported by the College of Business. Led by Professor Liang Dong, Assistant Professor at the PIA and School of Energy and Environment; Professor Linda Li Che-lan, Professor of Political Science at the PIA and Director of CSHK; and Professor Phyllis Mo Lai-lan, Professor at the Department of Accountancy and Associate Director of CSHK, the seminar highlighted the major findings of their research report. The event also included a Q&A session, providing attendees with an opportunity to explore the topic further.
The research team completed the first ever estimation of financed emissions in Hong Kong, which could significantly contribute to Hong Kong's transition towards carbon neutrality and its success as a leading international financial centre and regional green finance hub.
The report utilised the established formulas of the Global GHG Accounting Standard for the Financial Industry from the Partnership for Carbon Accounting Financials (PCAF) to estimate Hong Kong's financed emissions and proposed four policy recommendations.
Professor Phyllis Mo said, "Financial institutions can play a more active role in driving Hong Kong's low-carbon transition. Asset managers should provide financial activity information by sector and develop a localised asset turnover ratio database to facilitate the estimation of financed emissions."
Professor Eddie Hui, Head of the Department of Public and International Affairs, gives a welcoming speech
(From left) Professor Phyllis Mo Lai-lan, Professor Linda Li Che-lan and Professor Liang Dong lead the seminar
The report highlighted that many multinational and local financial institutions operating in Hong Kong are unlisted. Therefore, it recommended that all licensed financial institutions be required to submit ESG reports covering overall greenhouse gas emissions data. The disclosure of such data would facilitate improved monitoring and assessment of the ecological footprint of financial activities.
According to the research, Hong Kong's financial institutions generated financed emissions totaling 380.27 million tonnes of carbon dioxide equivalents, approximately 11 times the city's financed emissions of 34.7 million tonnes in 2021. The report also proposed that estimated emissions could serve as benchmark information for setting science-based targets on carbon mitigation and designing climate-related disclosure metrics.
Based on the findings, the report put forward several policy recommendations to advance the development of Hong Kong as a regional green finance hub and contribute to ongoing decarbonisation efforts. These recommendations include strengthening licensed financial institutions' disclosure of GHG emissions, directing investment and financing activities towards low-carbon enterprises, improving the green finance certification scheme, and enhancing the training of professionals in green-related fields.
The seminar fostered valuable discussions on the role of financial institutions in driving Hong Kong's low-carbon transition and the significance of transparent emissions reporting.
The full report is available at: https://www.cityu.edu.hk/cshk/files/ResearchReports/EstimationofFinancedEmissions_20240411.pdf
The participants welcome the "Estimation of Financed Emissions in Hong Kong and Policy Recommendations Final Report"
(Front row from left) Mr Sivananth Ramachandra Iyer (Director - Policy, Registration and Oversight, Accounting and Financial Reporting Council), Ms Janey Lai (CEO, Accounting and Financial Reporting Council) and Mr Cary Chan (Executive Director, Hong Kong Green Building Council) join the seminar and share their views during Q&A session