A new alliance aimed at encouraging commercial banks in Asia to adopt strategies and targets to become greener and help fight climate change has been formed.
IFC, a member of the World Bank Group, has signed an agreement with the Hong Kong Monetary Authority (HKMA) to bring together financial institutions, banking industry associations, research institutions and technology providers from across Asia to develop, build and boost the capacity for green finance and promote climate investments over the next five years.
As the founding member and first regional anchor for the Asia Chapter of the Alliance for Green Commercial Banks – a new initiative launched by the IFC – the HKMA will serve as the hub for green finance among commercial banks in Asia.
The two organisations will jointly launch targeted initiatives and campaigns in the region to undertake green finance research, provide unique market insight, tailor capacity building and training support and provide practical guidance for banks to help mainstream green finance as their core business and revamp existing green financial products and services.
IFC research estimates that cities in emerging markets alone have the potential to attract more than $29 trillion (£22tn) in climate-related investments by 2030, with the Asia-Pacific region having the highest potential of any region in the world.
Eddie Yue, Chief Executive of the HKMA said: “The HKMA is keenly aware that a global collective effort is required to combat climate change and that the financial sector will play a crucial role in developing green and sustainable finance.
“It is our great honour to join hands again with IFC on the Alliance for Green Commercial Banks and share the same mission to support financial institutions on their green transition to become leading green banks, whilst contributing towards global efforts to tackle climate change.”