HKMA and Global Finance Leaders Form Strategic Alliance to Drive Sustainable Investment in Asia

Mr. Howard Lee, Chief Executive Officer of the Exchange Fund Investment Office at HKMA, underscored Hong Kong’s role as a central green finance hub in Asia.

The Hong Kong Monetary Authority (HKMA) has announced a major partnership with key multilateral organizations, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and the International Finance Corporation (IFC), a member of the World Bank Group, to support sustainable finance in Asia. This alliance, revealed at the Asia Climate Investment Seminar, signals a transformative approach to accelerating climate-resilient and low-carbon growth across Asia, a region facing significant environmental challenges.

Actis GP LLP, an investment firm focused on emerging markets, joins as a General Partner in the initiative, with a targeted deployment of at least US$500 million across various climate-focused projects in Asia. Key sectors for investment include renewable energy infrastructure, sustainable transportation, and energy solutions, with the goal of supporting Asia’s transition to net-zero emissions and reducing greenhouse gas impacts.

Key Voices from the Strategic Partners

Mr. Howard Lee, Chief Executive Officer of the Exchange Fund Investment Office at HKMA, underscored Hong Kong’s role as a central green finance hub in Asia. “Hong Kong has been at the forefront of green finance, facilitating a significant portion of the region’s international green bonds. This partnership is a testament to our commitment to show that financial returns and sustainable development can go hand in hand,” he stated, adding that the alliance aims to solidify Hong Kong’s role in driving both economic progress and environmental stewardship across Asia.

Ms. Suzanne Gaboury, Director General for Private Sector Operations at ADB, highlighted the region's climate investment needs: “Asia’s developing economies face large climate investment gaps that must be closed to pave the way for green growth. ADB, as the region’s climate bank, is scaling up financing and working with like-minded partners to funnel capital into viable and impactful development projects.”

AIIB’s Director General, Financial Institutions and Funds Clients Department, Mr. Gregory Liu, emphasized AIIB’s dedication to regional sustainability, remarking, “This strategic partnership aligns with AIIB’s commitment to advancing climate-centered investments that support sustainable growth. Together with HKMA, ADB, and IFC, we are laying the groundwork for impactful climate action and fostering regional resilience.”

A Collaborative Approach to Regional Resilience

The HKMA partnership builds on growing concerns over climate risks across Asia, home to over half of the global population and half of global emissions. The region's economic development is under threat from rapid industrialization and carbon-intensive energy grids, prompting urgent action from public and private entities alike.

IFC’s Regional Director for East Asia and the Pacific, Ms. Kim-See Lim, spoke to the stakes involved: “Asia faces a critical juncture in addressing the climate crisis. This partnership will drive essential change by directing capital to climate projects in the areas that need it most, while promoting an inclusive, low-carbon transition for sustainable economic growth.”

The alliance also emphasizes the importance of mobilizing private sector investments to fill gaps in climate financing, a task that Actis GP LLP sees as vital. Shami Nissan, Head of Sustainability at Actis, noted, “Asia’s contribution is pivotal to delivering a net-zero future. With a population of over four billion, rapid industrialization, and a significant share of emissions, investing in Asia’s green transformation is critical for global sustainability.”

Future Actions and Sustainable Goals

Under this partnership, the HKMA, ADB, AIIB, and IFC will create a framework for sustainable investments across Asia, addressing diverse areas of climate adaptation and mitigation. The collaboration underscores a united commitment to catalyze Asia’s path to a low-carbon future, aligning with global climate targets and providing sustainable investment opportunities.

With this alliance, HKMA and its partners are demonstrating that addressing climate risks in Asia is achievable through collaborative and strategic financial approaches. The partnership exemplifies a unified push towards a resilient and sustainable future, leveraging international green finance for impactful, long-term environmental outcomes across the region.