Hong Kong is positioned to help bridge Asia’s climate-financing gap, leveraging over US$200 trillion in global assets under management. The region needs US$1.1 trillion annually for climate action, with a significant shortfall. However, global investors are shifting funds to Asia, with a maturing sustainable finance market.

The Asian Infrastructure Investment Bank issued a Hong Kong dollar-denominated bond, raising US$549 million, with plans for a benchmark-sized issuance next year. Hong Kong’s sustainable-finance taxonomy attracts risk-averse investors, while its strong green-bond market showcases leadership in climate finance. The bank partners with the Hong Kong Monetary Authority to promote green venture capital.

AIIB emphasizes a holistic regional approach to climate finance, addressing adaptation and mitigation needs in various countries. The bank supports climate-critical sectors in Bangladesh with a US$800 million loan. Lim Kim-see, AIIB’s chief investment officer, underscores the global nature of climate challenges and the need for collaborative financing efforts.

Read more at Yahoo Finance: Hong Kong can unlock capital to fill Asia’s US$800 billion climate-finance gap, AIIB says