Hong Kong can leverage its financial management capabilities and regulation experience to build a green financing market for environmental projects in the Guangdong-Hong Kong-Macao Greater Bay Area, panelists told the Hong Kong Green Finance Association on Monday.

The non-profit organization for promoting green finance on Monday organized a forum in Hong Kong to discuss how to mobilize financial resources for environmental projects in the Bay Area.

The central government in February issued the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area which highlights the strategic goals of achieving clean energy and energy savings, clean transportation, climate resilience as well as green finance development in the Bay Area.

Green bond issuances in Hong Kong in 2018 totaled $11 billion – a rise 2.6 times higher than that of a year earlier. Issuers included multilateral development banks, financial institutions and private sector companies from Hong Kong, the Chinese mainland, etc. Hong Kong government's first sovereign green bond issuance also met favorable responses from the international investor community.

Financial Secretary Paul Chan Mo-po told the inauguration ceremony of the forum: "This demonstrates the global competitiveness of Hong Kong and what we can deliver as a green financing hub given our wide-ranging strengths as an international financial center.

"The draft plan for the Bay Area promulgated early this year further supported Hong Kong's development as the Bay Area's driver in the financial services sector and green finance is very much supported," Chan added.

But Hong Kong Green Finance Association Chairman and President Ma Jun said the SAR could not rest on its laurels. "Hong Kong, which has made great progress in the past few years in green finance, should not be complacent.

"Compared with the most strong green financing market, we still need to catch up in terms of clarifying standards, adopting green principles, conducting environmental analysis and incubating green companies," Ma said.

HKGFA is a platform created to mobilize private sector resources and talents to assist in developing green finance policies and promote the adoption of green finance and responsible investment principles and practices by financial institutions.

The Bay Area comprises Hong Kong, Macao and nine mainland cities in the Pearl River Delta with a combined gross domestic product amounting to $1.6 trillion.

However, manufacturing activities in the 11-city cluster have created pollution. It is estimated that the area accounts for 12 percent of the country's GDP.

There appears to be a disproportion in the proceeds from green bond issuances in the Bay Area (which make up 5.6 percent of country's total) and the GDP of the area. This reflects potential growth opportunities in sustainable financing, according to a report of Hong Kong Quality Assurance Agency.