In recent times, various prominent financial hubs worldwide, including China and Hong Kong, have actively been promoting the concept of a green economy. Green finance not only enables enterprises to secure funds for investments in environmentally friendly projects but also allows investors to participate in such ventures, contributing to the sustainable development of both business and the environment. In 2018, the Hong Kong government introduced the Green Bond Program, with a borrowing limit of HK$100 billion, to foster the growth of the green bond market in the region. However, many enterprises in Hong Kong, particularly non-listed companies, lack a comprehensive understanding of green finance, including the procedures, standards, requirements, and the need for capacity building when seeking debt financing for green investment projects.
To address this gap and empower local enterprises to seize green investment opportunities, thereby enhancing their sustainable competitiveness, the Chinese Manufacturers’ Association of Hong Kong (CMA) has successfully secured support from the Trade and Industry Department of the HKSAR Government through the Trade and Industrial Organization Support Fund (TSF). This support will facilitate the implementation of a green finance project titled “Enhancing the Sustainable Competitiveness of Non-Listed Hong Kong Enterprises through the Utilization of Green Financial Instruments.” The project is scheduled to commence on 1 December 2020 and will be completed within a span of 16 months. It aims to benefit enterprises from five key sectors, namely logistics, food and beverage, food manufacturing, environmental, and property management industries, as well as non-listed enterprises in general. This initiative will contribute to the expansion of green and sustainable finance in Hong Kong, aligning with the government’s vision of establishing the city as a leading hub for green finance in Asia.
Project Deliverables
This project aims to overcome the existing barriers and capacity challenges faced by non-listed companies in Hong Kong when it comes to accessing green finance. To achieve this, we will
- create an online knowledge sharing platform (E-platform) that will serve as a valuable resource for all enterprises, particularly SMEs. The platform will provide comprehensive green financial information, including self-assessment tools for green financing readiness in terms of technical, management, and financial aspects. It will also feature successful case studies and other references related to green finance. Additionally, the platform will facilitate connections between companies and key stakeholders such as potential issuers and investors. SMEs will have the opportunity to seek one-stop support from experts in various fields, including finance, environment, and legal sectors, for green bond and loan issuance.
- develop five industry-specific green finance implementation guidebooks for enterprises operating in logistics, food & beverage, food manufacturing, environmental, and property management industries. These guidebooks will be tailored to each industry and will provide practical, step-by-step guidance to help enterprises access green finance.
To enhance entrepreneurs’ understanding of the economic benefits of green investments and improve their knowledge and skills in green finance, we will organize two seminars and an investor forum. These events will also provide networking opportunities for entrepreneurs to connect with potential investors.
