eddie yue : hong kong - the asian hub for sustainable finance opening remarks by mr eddie yue, deputy chief executive of the hong kong monetary authority, at the euromoney ’ s 2nd asia sustainable & responsible capital markets forum, hong kong, 25 june 2019. * * * distinguished guests, ladies and gentlemen, 1. i would like to thank euromoney for inviting me to speak at this 2nd asia sustainable and responsible capital markets forum today. it is indeed an honour to have this opportunity to talk about this important topic, especially here in hong kong, where we place a high priority on and direct much effort towards developing our sustainable finance platform. 2. i understand that we will have a very comprehensive programme today, covering not just the potential of sustainable finance in the region and the role of different stakeholders, but also exciting developments of green bonds and other innovative products. allow me then to focus my remarks on the bigger picture and on three areas in particular : ( i ) first, the potential for sustainable finance in asia ; ( ii ) second, hong kong ’ s role as asia ’ s hub for sustainable finance ; and ( iii ) third, some of the hong kong monetary authority ( hkma ) ’ s latest initiatives on this topic. potential for sustainable finance in asia 3. the effects of climate change are already visible around the world : more severe weather events, infrastructure damage, problems with food security, water resources, and even human health. no country or community is immune. according to the international monetary fund ( imf ), in the past four decades, we have witnessed the warmest years on record and the number of natural disasters has more than doubled. 4. the global community is already taking concrete actions to tackle climate change and there have been many admirable efforts. for example, countries around the world are putting in place policies to implement the 2015 paris agreement. in the world of finance, central banks, financial regulators and institutions are increasingly adopting agendas to promote green finance. the imf has highlighted in its latest global policy agenda the importance for international collaboration to combat climate risk and what the imf will do to support this effort. 5. here in asia, huge investments in green and climate - resilient infrastructure are needed across the region. the asian development bank ( adb ) estimates that us $ 1. 7 trillion per year will be needed through 2030 for the region to maintain growth momentum, eradicate poverty and respond to climate change. 6. there is also

the united states. by investor type, 29 % was distributed to banks, 30 % to fund managers, private banks and insurance companies, and 41 % to sovereign wealth funds, central banks and supranationals. based on some rough calculations by our joint global coordinators, about half of the investors participating in our deal could be loosely defined as “ green investors ”. 19. by going through the issuance process ourselves, along with the help of external parties, we have hopefully showcased to potential green bond issuers, both locally and overseas, that hong kong is a convenient platform for issuing green bonds, for three reasons : 3 / 4 bis central bankers'speeches ( i ) hong kong has a strong presence of finance and legal professionals, who can advise on all aspects of the bond offering and assist in arranging, managing, co - ordinating and marketing the green bond certification and issuance ; ( ii ) hong kong combines the best market practice from internationally renowned green reviewers and local agencies. for example, we obtained a second party opinion from vigeo eiris for the green bond framework and the inaugural transaction under the framework has also received the “ green finance certificate ” ( pre - issuance ) from the hkqaa ; and ( iii ) hong kong is home to leading international institutional investors, including many of the investors who have made strong commitments to green investments. 20. during the roadshow for the green bond, we were joined by our environment bureau colleagues to reach out to overseas investors in major cities such as london, new york, paris, and frankfurt, in order to demonstrate to the international community the hksar government ’ s coordinated commitment to green finance and our broader objective to address climate change risks. we believe the exercise has gone a long way in asserting hong kong ’ s branding as the premier regional green finance hub to the leading institutional investors around the world. 21. to join like - minded peers globally in promoting best practices in green and sustainable finance, we have signed up to or are in the process of joining several international charters or organisations, such as the united nations - supported principles for responsible investment ( unpri ), focusing capital on the long term ( fclt ), the financial stability board ( fsb ) ’ s task force on climate - related financial disclosures ( tcfd ), and the central banks and supervisors network for greening the financial system ( ngfs ). 22. the hkma is not alone in driving green and sustainable finance