Green fintech ecosystem in Hong Kong and other Apec economies needs standardised reporting framework and regional collaboration, Ant Group-backed report says
- Standardised taxonomy provides clarity and transparency, enabling investors to make informed decisions and channel funds towards sustainable projects, Ant executive says
- Hong Kong is being positioned as a leader for green fintech in Asia, but access to funding and insufficient structural support are proving to be its ‘greatest’ obstacles: report
The complex green fintech landscape across Hong Kong, Indonesia, Singapore, Thailand and South Korea requires standardised best practices for the alignment of their respective ecosystems, according to the “Green Fintech Report 2023”, which was published by GoImpact Capital Partners, the Chinese University of Hong Kong Business School and Ant Group on Tuesday. Ant is an affiliate of Alibaba Group Holding, which owns the Post.
“By building closer linkages across government regulatory bodies, corporate entities and the fintech sector, we can create an environment that facilitates innovation and economic growth,” Jennifer Tan, Ant’s executive vice-president of strategy development and government affairs in the Greater Bay Area, said during a media briefing at the launch of the report. “Regional collaboration is key to addressing common challenges and driving economic integration.
“It is imperative to establish clear regional policies that promote cross-sector collaboration between governments and regions.”
The report stressed the importance of implementing a regional green taxonomy with global relevance, which would attract more environmental, social and governance (ESG) investments from international sources.
“A standardised taxonomy provides clarity and transparency, enabling investors to make informed decisions and channel funds towards sustainable projects,” Tan said.
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“By aligning our regional taxonomy with global standards, we can further attract a greater inflow of ESG investments, fostering sustainable growth through regional collaboration.”
Governments of the five Asia-Pacific Economic Cooperation (Apec) economies have been exploring innovative strategies such as carbon taxes and tax incentives for the greentech and cleantech industries as well as carbon markets, according to the study.
The five economies were chosen “as a representative spectrum” of the region in the study, with Apec as the backdrop, Helene Li, CEO and co-founder of GoImpact, said during the media briefing.
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Hong Kong is being positioned as a leader for green fintech in the Asian region, with strong involvement from the government, according to the report. However, access to funding and insufficient structural support are some of the greatest obstacles to the development of a green fintech ecosystem, especially for start-ups and small and medium enterprises.
“Sustainability is truly the defining challenge of our century, but it could also be the greatest opportunity, simply because we all don’t know how to navigate this transition,” Poman Lo, vice-chairman of Century City International Holdings, told a panel at the Hong Kong Green Finance Association’s annual forum earlier this month.
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“It will be the greatest transition in the history of humankind, to transition away from our fossil-based economy,” said Lo, who is also a member of the green technology and finance development committee. “Technology breakthroughs are what we need to drive this transition.”
The convergence of green finance and technology must form the collective steering force that propels government and private-sector initiatives on sustainability and ESG to reshape a world order where investments, sustainability and environmental stewardship seamlessly coexist towards common goals, the report said.
“The intersection of green, [finance] and tech will no doubt be the sweet spot whereby accelerated action can take shape,” said GoImpact’s Li.
“And we need acceleration very badly.”
