HKMA Sets Mandatory Carbon Emission Targets for Banks: Aligning Financial Operations with Hong Kong’s 2030-2050 Sustainability Goals

The HKMA will mandate banks to align with Hong Kong's carbon emissions goals for the years 2030-2050. The authority also stipulates that banks should guarantee their loans to businesses and projects achieve net zero emissions by 2050.

On Monday, the HKMA presented these objectives, which are incorporated in its "Sustainable Finance Action Agenda".

"Climate change is the paramount issue of our era," stated Eddie Yue Wai-man, the CEO of HKMA.

Yue stated that Hong Kong, being a global financial hub, holds the duty to promote sustainable fund transfers while "guaranteeing that banks correctly handle the risks tied to net zero".

According to the Paris climate agreement, global heads of state have pledged to keep global warming significantly under 2 degrees Celsius more than before the industrial era, and they are making efforts to limit it to 1.5 degrees. China anticipates its carbon emissions will hit their highest point by the close of this decade and has set a goal to balance out its emissions by 2060, which is also when it plans to reduce its fossil fuel usage to less than 20% of its total energy use. Meanwhile, Hong Kong is aiming to reach a balance in emissions before 2050.