The Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA) are exploring how to further develop policy and regulatory responses to support and enable climate finance in the Middle East and Asia. This is being facilitated by a new partnership between the two firms.
The DFSA and the HKMA have collaborated on numerous fronts before. In December 2017, the DFSA signed a cooperation agreement with the HKMA to collaborate on financial innovation. The new partnership builds on the existing relationship and will bolster cross-border collaboration. In turn, this will advance sustainable finance across the two regions as both transition towards net zero.
Eddie Yue, chief executive of the HKMA, said: “Climate change knows no boundaries. It requires joint actions across regions and sectors to tackle. We are excited about this new project with the DFSA. It provides a platform for more regular knowledge sharing and collaboration between the Middle East and Asia. Especially on the important subject of sustainable finance.”
Building up to the Join Climate Finance Conference
The flagship initiative of this partnership is the upcoming Joint Climate Finance Conference. It will take place in Hong Kong in autumn 2024. This event will explore common opportunities and challenges in accelerating the flow of transition financing in the Middle East and Asia.
Discussions are expected to focus on the role of supervisors and central banks in facilitating sustainable capital flows. It will also look at how best to leverage frameworks and existing and innovative green financing solutions (ranging from debt to carbon markets). Lastly, it will analyse the importance of robust international cooperation to effect climate action globally.
The Joint Climate Finance Conference will align with the commitments driven by the UAE’s Presidency of COP28. Additionally, it will leverage Hong Kong’s role as a green and sustainable finance hub in Asia.
Reflecting on this collaboration, Ian Johnston, chief executive of the DFSA, said: “The DFSA is delighted to strengthen our cooperation with the HKMA, reinforcing our shared commitment to promoting sustainable finance across the Middle East and Asia. This strategic partnership will continue to support our efforts to enable a thriving sustainable financial centre in the DIFC and to support the UAE’s focus on sustainable development and ongoing net-zero transition.”
The joint effort between the DFSA and the HKMA stands as a beacon of commitment to sustainable finance. As a result, it is poised to make a lasting impact on the Middle Eastern and Asian financial landscape. Together, both regulatory bodies forge ahead, championing a future marked by responsible financial practices and a global transition to a net-zero economy.