Developing countries need 12 to 14 times current international public funding to adapt to climate change, the Hong Kong Monetary Authority said in a speech published Oct. 29 by the Bank for International Settlements.
Funding to curb climate change also needs to reach three to four times current global flows, the authority said. The speech, titled “Connecting sustainable finance with climate-resilient growth,” sets out Hong Kong’s response to those financing gaps.
The authority said its approach combines clearer standards for sustainable investments with measures to bring together funding, financial institutions and technology. The speech describes policy initiatives and financing needs rather than findings from a research study, and gives no measurement period for the global funding comparisons.
The authority said its latest proposed classification system for sustainable finance covers 39 activities to reduce climate change and 28 measures to adapt to its effects. The system, known as a taxonomy, defines which activities qualify for sustainable financing. Its coverage includes battery manufacturing and recycling, alongside production of technologies that produce fewer carbon emissions.
The authority said the proposed adaptation standards address flooding, storm damage and shoreline protection in Hong Kong. The city experienced 14 tropical cyclones and issued its highest-level rainstorm warning five times in 2025, both records, the authority said. It linked the inclusion of adaptation measures to the region’s exposure to physical climate risks.
The authority said it had also finalised guidelines to help banks plan for changes associated with climate change. Those guidelines aim to help lenders manage risks and identify financing opportunities as clients change their businesses. A cloud-based platform provided by the authority helps banks assess how exposed clients’ assets are to climate hazards and identify their adaptation needs.
The authority said it is developing disclosure requirements for banks to make information more reliable and easier to compare. Greater disclosure by banks and companies would help investors and lenders make decisions about sustainable finance. More banks and companies had also adopted the taxonomy, without a count given.
Hong Kong’s government has issued nearly HK$280 billion in green bonds since 2019, with proceeds allocated to more than 110 public green projects, the authority said. Those sales provide reference points for other potential issuers in the region and help encourage further sustainable bond issuance.
The authority said technology could help direct money towards sustainable projects and improve financial services. It cited carbon-trading platforms, automated systems for monitoring and verification, and artificial intelligence tools for assessing risk. Combining finance, expertise and technology could turn ideas into practical businesses that can expand.
