The global landscape for climate cooperation is shifting. With changing commitments among major economies, including the United States’ scheduled withdrawal from the Paris Agreement in three months’ time, the dynamics of international climate governance are entering a new chapter. While such developments pose challenges, they also open space for new forms of leadership and collaboration — particularly in Asia, where the urgency of climate action is matched by growing capacity and innovation.

Against this backdrop, Hong Kong is playing a strategic role as a trusted platform for sustainable finance and cross-border cooperation, connecting capital, expertise, and policy frameworks to support the region’s transition toward a greener future.

A new phase in global climate cooperation

Today’s climate reality demands more than reaffirming past commitments — it requires practical systems that can accelerate action at scale.

As global participation shifts, so does the center of gravity in climate diplomacy. While some traditional players recalibrate their roles, Asia is stepping up — not just in mitigation and adaptation, but in shaping the financial and technological infrastructure essential to the green transition.

In this context, Hong Kong’s contribution extends beyond its borders. The city is enabling a new model of climate leadership — one grounded in connectivity, credibility, and capital mobilization.

Building infrastructure for scalable green finance

Hong Kong’s green finance ecosystem has matured rapidly. The Hong Kong Monetary Authority’s Sustainable Finance Action Agenda sets a clear pathway to net-zero operations by 2030 and supports banks and financial institutions in aligning their portfolios with science-based transition goals.

A cornerstone of this effort is the development of the Hong Kong Taxonomy for Sustainable Finance, which defines sustainable and transitional activities in a way that balances international alignment with regional applicability. This provides clarity for investors and issuers alike, making it easier to channel capital into credible climate solutions.

We at InvestHK are proud to support this momentum — helping institutions navigate policy, connect with partners, and turn climate ambition into bankable solutions. As the region accelerates its transition, Hong Kong stands ready as a platform for shared progress — and we invite global stakeholders to help build what comes next, together

Innovation is also central. In 2023, the HKMA issued the world’s first tokenized green bond, using blockchain to increase transparency and traceability. Initiatives like Project Ensemble are digitizing environmental, social and governance (ESG) investment processes, streamlining compliance and accelerating access to green capital.

This forward-looking approach is reinforced by the latest Policy Address. The special administrative region government is committed to deepening pilot cooperation with the Guangdong-Hong Kong-Macao Greater Bay Area carbon market through the city stock exchange’s Core Climate platform; it is also working with Chinese mainland authorities to study the country’s participation in the international carbon market, solidifying Hong Kong’s role as a key architect of future carbon finance.

As a result, the numbers are compelling. In 2024, Hong Kong facilitated over $84 billion in green, social, sustainability and sustainability-linked bonds and loans, including $43.1 billion in international bond issuance — reinforcing its position as Asia’s leading sustainable finance hub.

Regional platform, global reach

What sets Hong Kong apart in the global green transition is not just its robust regulatory framework, but its ability to serve as a regional launchpad for scalable, cross-border climate finance. From green infrastructure in Southeast Asia to sustainability-linked, sharia-compliant financial certificates — known as sukuk — in the Middle East, Hong Kong is increasingly where global capital meets Asia’s climate priorities.

InvestHK has seen growing momentum from international banks, fintechs and corporates using Hong Kong as a base for sustainability initiatives that span geography and sectors. The city’s unique convergence of common law, capital mobility, and close connectivity with the mainland creates an enabling environment for innovative deal-structuring, blended finance, and climate-smart investment across borders.

As developing economies seek bankable solutions for their transition pathways, Hong Kong is stepping in not only as a financial center but as a trusted partner in shaping Asia’s climate-resilient future.

HK scales up sustainable finance collaborations

Over the past month, Hong Kong has continued to strengthen its role as a regional catalyst for green and sustainable finance. Events such as Hong Kong Green Week brought together global stakeholders to accelerate progress on transition finance, climate innovation, and nature-related risk integration.

Capitalizing on the city’s enabling ecosystem, the Hong Kong University of Science and Technology and a consortium of French companies — including Schneider Electric and Veolia — signed a memorandum of understanding to launch a low-carbon retrofit pilot project. This partnership demonstrates how international collaboration can turn policy ambition into scalable, real-world solutions. The pilot project is not only about sustainability but also about market creation and investment facilitation. With over 90 percent of Hong Kong’s existing buildings expected to still be in use by 2050, the retrofitting sector represents a significant opportunity for investment, innovation, and job creation.

An Invest Hong Kong (InvestHK) delegation was in North America last month strengthening partnerships in sustainability and green tech, with a key presence at events like Climate Week NYC. This participation underscores Hong Kong’s role as a vital hub for North American innovators to secure funding and scale their solutions across the Greater Bay Area and Asia. Another initiative is a workshop on Hong Kong’s role in decarbonizing the Global South with a focus on Islamic Green Finance and how emerging markets and developing economies are the front lines of our fight against climate change.

HK’s strategic role in catalyzing Asia’s green transition

As climate governance becomes more multipolar, Asia is not just participating — it’s shaping the global sustainability agenda. Across the region, countries are scaling renewable energy, embracing green technologies, and helping define the standards that guide the next phase of climate action.

Hong Kong plays a catalytic role in this transformation. By merging world-class financial infrastructure with a future-ready regulatory environment, the city is creating the conditions for capital to flow, innovation to scale up, and collaboration to thrive.

We at InvestHK are proud to support this momentum — helping institutions navigate policy, connect with partners, and turn climate ambition into bankable solutions. As the region accelerates its transition, Hong Kong stands ready as a platform for shared progress — and we invite global stakeholders to help build what comes next, together.

The author is director-general of Invest Hong Kong.

The views do not necessarily reflect those of China Daily.