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HKMA Mandates Banks to Align with Hong Kong’s Carbon Emission Targets by 2050: A Step Towards Sustainable Finance
The Hong Kong Monetary Authority (HKMA) will mandate banks to align with Hong Kong's carbon emission goals for 2030-2050. Additionally, the HKMA insists that banks must make certain their loans to businesses and ventures achieve net zero emissions by the year 2050.
The Hong Kong Monetary Authority (HKMA) revealed these objectives on Monday, as they are components of its "Sustainable Finance Action Agenda."
"Addressing climate change is the crucial task of our era," stated Eddie Yue Wai-man, the CEO of HKMA.
Yue conveyed that Hong Kong, being a global financial hub, has an obligation to enable sustainable fund movements, while simultaneously "guaranteeing that banks handle the risks tied to net zero efficiently".
The Paris climate agreement involves global authorities pledging to limit global warming to "significantly under" 2 degrees Celsius compared to pre-industrial levels, and making efforts to maintain it at 1.5 degrees. China anticipates its carbon emissions to peak by the close of this decade and is targeting to balance out its emissions by 2060, the same year it plans to reduce its fossil fuel usage to less than 20 per cent of its total energy consumption. Meanwhile, Hong Kong aims to reach zero emissions before 2050.
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