Letters | Hong Kong can help China and the US green the global banking industry

Name: President Biden signs first-day executive orders for US return to Paris climate accord, WHO and more
Uploaded: 2021-01-24T22:35:11.000Z
Duration: 49 s
Description: President Biden signs first-day executive orders for US return to Paris climate accord, WHO and more

The Hong Kong Monetary Authority has an important role to play in managing climate-related financial risks. It can help strengthen Sino-US collaboration to establish a new green order for the international financial sector

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A man looks across Victoria Harbour at the towers that house banks and financial institutions, including the Hong Kong Monetary Authority, on September 1, 2020, when the Observatory recorded high air pollution. Photo: Edmund So

Letters

Published: 6:35am, 25 Jan 2021Updated: 6:35am, 25 Jan 2021

Referring to the op-ed by Stephen Orlins “How Biden’s America and China can turn page on a rocky relationship” (January 14), we agree with the author that the Biden administration could reverse some of former US president Donald Trump’s policies on education, diplomacy and trade to improve US-China relations. We believe the new US president should also focus his climate policies on green finance and collaborate with China to set new rules for the global banking industry to manage the risks of climate change.

As an international financial centre, Hong Kong can facilitate such Sino-US collaboration on greening the global banking industry.

With carbon dioxide levels reaching a new record, 2020 joined 2016 in becoming hottest year ever recorded. Climate crises have increased financial shocks and system vulnerabilities, threatening the profitability and wealth of global businesses, especially those with assets in coastal regions. Under the Paris climate agreement, the Central Banks and Supervisors Network for Greening the Financial System (NGFS) was established to share best practices and improve climate risk management in the financial sector.

With US President Joe Biden having started the process of the country rejoining the Paris climate accord, the US Federal Reserve will soon participate in NGFS’ discussion of the climate risks facing the banking industry. Although some NGFS members, such as Britain, will soon require large corporations to disclose climate-related financial risks, the US Fed will need to learn from its counterparts to make up for its lack of the relevant institutional knowledge.

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President Biden signs first-day executive orders for US return to Paris climate accord, WHO and more

Biden’s efforts on climate risk management could meet resistance from the US banking industry but are likely to win the support of the US House of Representatives and the US Senate, both controlled by the Democrats.

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Letters | Hong Kong can help China and the US green the global banking industry