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Hong Kong and Dubai Bolster Sustainable Finance Collaboration Amid Rising Climate Risks: An Ambitious Target of $8.5 Trillion Annually by 2030
Hong Kong and Dubai are looking to fortify their partnership in the area of eco-friendly finance due to escalating climate threats. According to a US non-profit organization, worldwide funding for climate issues needs to rise at least six times to reach an annual figure of US$8.5 trillion by 2030 in order to curb global warming.
Financial regulators in Hong Kong and Dubai are intensifying their alliance to boost green finance. Their aim is to draw more investments to tackle environmental issues, building on their previous cooperation in policy-making responses.
The Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA) officially signed a mutual agreement on Monday. This partnership aims to increase international communication, share more information, and find methods to significantly contribute to the green bond market.
"Climate change is a worldwide issue that demands a unified action," stated HKMA CEO Eddie Yue Wai-mun during the Climate Finance Conference in Hong Kong. He further emphasized that Hong Kong and Dubai "must increase their joint efforts. We don't have the luxury of time to develop a flawless plan."
The Memorandum of Understanding (MOU) comes after a collaboration in December where both regulatory bodies decided to advance policy and regulatory measures to bolster climate finance in both areas. Climate finance denotes all financial movements – both nationally and globally, from public and private sectors – aimed at tackling the root causes and effects of climate change.
Funding towards worldwide climate control has consistently risen over recent years, peaking at approximately US$1.3 trillion in 2021 as per the Climate Policy Initiative's reports. The US non-profit organization estimates that to halt global temperature rise beyond 1.5 degrees Celsius by the century's end, the annual financial influx needs to multiply at least six times, reaching US$8.5 trillion between the present time and 2030.
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