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TLDR:
- Hong Kong’s green financing expertise can help emerging markets in Asia-Pacific fill funding gap for climate change.
- IFC regional head Riccardo Puliti highlights Hong Kong’s technical, legal, and financial knowledge as key strengths.
Hong Kong, with its technical, legal, and financial knowledge, is in a unique position to help emerging markets in Asia-Pacific address the significant funding gap for climate change initiatives, according to Riccardo Puliti, the regional head of the International Finance Corp (IFC). As countries in the Asia-Pacific region are major consumers of coal and highly vulnerable to climate change impacts, the need for investment in mitigation and adaptation is crucial. Puliti emphasized the importance of private sector financing in filling this gap, highlighting the role of sustainable debt instruments such as green bonds.
The World Bank estimates that Asia’s developing economies require at least US$1.1 trillion annually to meet climate needs but face a funding gap of around US$815 billion each year. To address this, Puliti underscored the importance of creating predictable policy and regulatory frameworks to attract private financing alongside public sources. The IFC has been actively involved in financing projects that target climate change and marine plastic waste in the region, with a record commitment of US$11 billion in Asia-Pacific for the fiscal year ended June 30.
Through initiatives like the co-hosted Climate Business Forum: Asia-Pacific, Hong Kong Green Week aims to facilitate dialogue on green and sustainable finance development. By leveraging Hong Kong’s expertise in green finance, the region can work towards a more sustainable and climate-resilient future, while also attracting private investments for impactful projects.
