Green fintech ecosystem in Hong Kong and other Apec economies needs standardised reporting framework and regional collaboration, Ant Group-backed report says

A recent industry report highlights the need for a standardised sustainability reporting framework and regional collaboration to develop a green fintech ecosystem in the Asia-Pacific region. The report, titled 'Green Fintech Report 2023', was published by GoImpact Capital Partners, the Chinese University of Hong Kong Business School and Ant Group, an affiliate of Alibaba Group Holding. It emphasises the complexity of the green fintech landscape across Hong Kong, Indonesia, Singapore, Thailand and South Korea, and the necessity for standardised best practices to align their respective ecosystems. Jennifer Tan, Ant’s executive vice-president of strategy development and government affairs in the Greater Bay Area, stressed the importance of building closer linkages across government regulatory bodies, corporate entities and the fintech sector to facilitate innovation and economic growth. She also highlighted the need for clear regional policies that promote cross-sector collaboration between governments and regions. The report also underscored the importance of implementing a regional green taxonomy with global relevance to attract more environmental, social and governance (ESG) investments from international sources. Tan explained that a standardised taxonomy provides clarity and transparency, enabling investors to make informed decisions and channel funds towards sustainable projects. The 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 report positions Hong Kong as a leader for green fintech in the Asian region, with strong government involvement. However, it also identifies access to funding and insufficient structural support as significant obstacles to the development of a green fintech ecosystem, particularly for start-ups and small and medium enterprises. Following Financial Secretary Paul Chan Mo-po's vision for Hong Kong as an international green tech and green finance centre, a green technology and finance development committee was established in June. The committee, which includes representatives from government bodies and regulators, as well as 13 members from relevant industries, aims to promote the development of the city into an international green technology and financial centre. Poman Lo, vice-chairman of Century City International Holdings, described sustainability as the defining challenge of our century, but also potentially the greatest opportunity. He emphasised the need for technology breakthroughs to drive the transition away from our fossil-based economy. The report concludes that 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. GoImpact’s Li echoed this sentiment, stating that the intersection of green, finance and tech will be the sweet spot for accelerated action, and that acceleration is urgently needed.