Paul Chan: US Climate Policy Shift is «Disappointing»
Hong Kong’s financial secretary Paul Chan called the American climate policy shift «disappointing» but remains hopeful that other committed countries, including China, can fill the gap.
During the Hong Kong Green Finance Association's (HKGFA) annual 2025 forum, Hong Kong financial secretary Paul Chan spoke about challenges in climate finance, most notably due to the recent US shift under President Donald Trump.
«The US withdrawal from the Paris Agreement and an overall policy shift back to fossil fuels is disappointing,» Chan said during a virtual opening speech attended by finews.asia. «It weakens corrective commitment to climate action and, no less important, complicates the $1.3 trillion annual climate finance target for developing countries reached at COP29.»
Asia's Commitment
According to Chan, «many countries remain firmly committed to net zero transition» including China, which stands by its goal of peaking CO2 emissions by 2030 and achieving carbon neutrality before 2060.
The financial secretary named notable highlights in China, such as a 1.6 percent year-on-year drop in CO2 emissions in the first quarter and expectations of around $820 billion in investments in energy transition in 2025, accounting for nearly 40 percent of the global total.
«Across Asia and the global south, the progress is also encouraging. In the Asia Pacific region, investments in energy transition last year surpassed $1 trillion for the first time. That is more than double the amount invested in America,» he added.
Hong Kong as Green Finance Hub
As for Hong Kong, Chan said it has a key role as a global green finance hub with over $80 billion in sustainable debt issued in 2024 and issuance in the first half of 2025 up 15 percent to $34 billion. More than 200 ESG funds have been authorized by the local regulator with assets under management exceeding $140 billion. The city has also issued a taxonomy framework to align with both mainland China and the EU.
«Today, the Hong Kong [Monetary Authority] begins a public consultation to expand this taxonomy to cover transition finance. Other elements include expanding sector coverage and introducing climate change adaptation,» Chan shared.
«These are pivotal to scaling up capital flows to accelerate green transition. Taking a broader perspective, setting and upholding international standards are important if we are to attract and channel more investments to green and transition projects.»
Tech Drivers
Aside from finance, Chan also underlined supportive developments in technology with Hong Kong attracting green enterprises in fields such as AI-driven green solutions, sustainable aviation, electric mobility infrastructure and next-generation power systems.
«We are helping them to connect with Hong Kong universities and supply chain, identify more application scenarios, and tap into markets across the Greater Bay Area, Asia, and beyond,» Chan commented.
«Ladies and gentlemen, there is only one Earth, one planet that we all share. While the world may be facing substantial geopolitical challenges, Hong Kong is fully committed to becoming a reliable and resourceful partner in the global green transformation.»
