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The View
OpinionComment
Christine Loh
Christine Loh

As Asia embraces a zero-carbon future, Hong Kong must make a niche as a green finance hub

  • Trillions will be needed for China, Japan and South Korea, not to mention other Asian economies, to achieve carbon neutrality
  • Hong Kong’s financial sector has a critical role in helping to raise funds to make this green transition

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Hong Kong, like Japan and South Korea, has promised to be carbon-neutral by 2050. This means Hong Kong must rev up green financing. Photo: Shutterstock
Christine Loh
Something is in the air. China’s pledge in September to achieve carbon neutrality by 2060 spurred Japan and South Korea to make similar pledges to reduce net greenhouse gas emissions to zero by 2050. Hong Kong, too, committed to being carbon neutral by 2050. The European Union is already working within that time frame, and the next United States administration under Joe Biden is expected to make a similar pledge.
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China has, in effect, ignited a quiet revolution in Asia. These pledges will transform government policies and regulations, change the way business is done and stimulate development of new standards and practices, so that we too will have to adapt to low-carbon lifestyles.

In case anyone is still in doubt, achieving environmental and social sustainability is the direction for the world’s socio-economic future, impacting everything we do, including finance, technology and education. To decarbonise energy, industry, transport and consumption within 30 to 40 years requires enormous amounts of capital to be directed away from high-carbon to low- and zero-carbon sources and businesses.

Moreover, decarbonisation has to take place alongside aggressive environmental protection – reviving degraded ecosystems, protecting biodiversity – all of which needs to be done in a way that is socially just.

01:43

Japan aims to be carbon neutral by 2050, says Prime Minister Suga

Japan aims to be carbon neutral by 2050, says Prime Minister Suga

In addition, investments in infrastructure and city management systems must adapt to severe weather events – storms, floods, landslides – caused by a changing climate.

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