Hong Kong’s 2050 climate goals at risk if ‘green finance’ funds don’t go to the right projects, experts say
- Green groups want money put into energy, transport sectors instead of massive incinerator project
- Projects that encourage regional collaboration on renewable energy deserve funding, experts agree
The funding, they said, should be channelled instead towards decarbonising the city’s energy and transport sectors, which are still reliant on fossil fuels and together make up more than 80 per cent of Hong Kong’s carbon emissions.
“Most of the projects currently funded or about to be funded by green bonds are old projects that have been in the government’s policy agenda for years,” said Albert Lai Kwong-tak, CEO of Carbon Care Asia, a social business in carbon strategy and sustainability innovation.
Green finance aims to move available funding towards sustainable development, and manage social and environmental risks while delivering a decent rate of return and greater accountability.
Green bonds are fixed-income financial products designed to fund environmentally friendly projects.
The global market in green bonds reached a record high of US$269.5 billion in 2020, and is projected to hit between US$400 billion and US$450 billion this year.