The Role of Finance in Addressing Sustainable Development
12 Feb 2026
Green and sustainable finance has long been a strategic research priority for the Financial Services Development Council (FSDC). Since its initial foray in 2016, a series of FSDC thematic reports has examined the essential components for building a robust ecosystem, ranging from governance and regulation to data support, incentives, and benchmarking, with many recommendations already adopted by public sector stakeholders. In recent years, research has expanded to encompass emerging strategic pillars, including carbon trading, transition finance, and impact investing. These studies have informed policy formulation and industry practices, advancing the integration of sustainability into Hong Kong’s financial system and enhancing its alignment with international sustainability objectives.
Globally, despite the notable progress, the scale of financing continues to fall short of what is required to achieve international sustainability and climate goals. This gap and increasing complexity call for greater coordination, stronger policy alignment, and deeper integration of sustainability principles across all segments of the financial value chain worldwide. Sustainable finance is now a structural imperative—central to economic resilience, market competitiveness, and long-term prosperity—and financial centres have an increasingly critical role to play.
To this end, the FSDC commissioned the Z/Yen Group to develop this publication, which provides an overview of the evolving landscape of green and sustainable finance, highlighting key trends, opportunities, and challenges. The report also shares Hong Kong’s experience as a prominent green and sustainable finance hub—demonstrating how the city is advancing the sustainable development agenda through the alignment of financial innovation, regulatory integrity, and international collaboration.