The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance Cross-Agency Steering Group reaffirms its commitment to strengthening the financial ecosystem for a more sustainable future and reiterates its support for the Climate Action Plan 2050 of the government of Hong Kong. The Steering Group welcomed publication by the IFRS Foundation of the prototype for the climate disclosure standard, the publication of Common Ground Taxonomy report by the International Platform on Sustainable Finance (IPSF), and the global advances in building a worldwide carbon market. HKMA also announced that in partnership with the International Finance Corporation (IFC) and another institutional investor it will work to create a new USD 3 billion global platform for climate-smart investment aligned with the Paris Agreement.
The new program, Managed Co-Lending Portfolio Program (MCPP) One Planet, combines institutional investor contributions with IFC’s own funds to scale up climate-responsible financing for private companies in emerging markets. MCPP One Planet will create the world’s first cross-sectoral portfolio of emerging-market loans aligned with the Paris Agreement. The facility enables institutional investors to directly provide capital for sustainable lending in emerging markets, allowing investors to scale up their exposure to this asset class and increase the share of their portfolios aimed at climate-resilient development. MCPP One Planet builds on successful collaboration between IFC and its partners and will mark a further scale-up of IFC’s innovative MCPP private debt platform. Since its launch in 2013, MCPP has raised over USD 10 billion from 11 investors and provided financing to more than 200 firms across 55 developing countries. The IFC Managing Director Mr Makhtar Diop announced MCPP One Planet at COP26 and said that MCPP One Planet will create a global model for mobilization of institutional investor financing in support of the climate agenda for the most vulnerable communities on the frontlines of climate change—in emerging and developing economies. Joining hands with IFC is expected to allow HKMA to tap into the considerable expertise, experience, and network of IFC in sourcing investable and climate-responsible opportunities within proper risk management and governance framework.
Keywords: Asia Pacific, Hong Kong, Banking, Securities, Climate Change Risk, ESG, Sustainable Finance Disclosures, Climate Action Plan, MCPP One Planet, COP 26, IFRS, HKMA
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous ArticleECB Publishes Selected Pillar 3 Information for 2020 Reference Date
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.