Hong Kong Monetary Authority & Dubai Monetary Authority Research Report: There is great potential for the sustainable debt markets in the Middle East and North Africa region, as well as in the emerging Asia-Pacific region.

On November 18, the Hong Kong Monetary Authority and the Dubai Financial Services Authority released a research report titled "Expanding the Sustainable Debt Market in Emerging Markets." The report indicates that the sustainable debt markets in the Middle East and North Africa region, as well as the Asia-Pacific emerging markets, have significant growth potential as many issuers and borrowers have not yet utilized sustainable debt instruments for financing sustainable projects. Governments can provide support measures such as offsetting issuance costs of sustainable debt instruments and offering guidance to assist issuers in addressing challenges in entering the market. Encouraging more companies to issue, increasing the use of sustainable debt labels beyond green bonds, and exploring new issuance structures can all provide growth momentum for the market. Bloomberg New Energy Finance is a knowledge partner for the report. The report highlights the main outcomes of the joint research project aimed at exploring how emerging markets can leverage the potential of sustainable debt instruments to promote sustainable development. The report also includes three case studies showcasing innovations in sustainable finance in terms of traditional labels, tenures, and structures, including the issuance of blue bonds by DP World, sustainable development-linked loan bonds by Emirates NBD, and long-tenured green bonds and loans by MTR Corporation in Hong Kong. Dubai Financial Services Authority CEO Shih Weimin stated, "This research provides insights into the evolution of sustainable debt in the Middle East and North Africa, as well as the Asia-Pacific emerging markets. The issuance amount reaching USD 94 billion by 2024 reflects increasing investor confidence in this area and demonstrates the resilience of our market. We will continue to focus on supporting various sustainable and transformational finance to ensure the long-term stability and credibility of the market in Dubai International Financial Centre, the United Arab Emirates, and the entire region." Hong Kong Monetary Authority CEO Eddie Yue said, "Sustainable debt is a promising financial tool that helps bridge the trillion-dollar climate finance gap in emerging markets. Through this joint research, we hope to explore how to eliminate barriers faced by issuers and find growth opportunities. As the sustainable finance center that accounted for 45% of international green bond issuance in Asia in 2024, Hong Kong is committed to utilizing its infrastructure and expertise to support emerging markets in achieving sustainable development goals." Bloomberg New Energy Finance CEO Jon Moore stated, "Sustainable debt helps establish trust in the financial markets and enhance transparency. The Hong Kong Monetary Authority and the Dubai Financial Services Authority are jointly promoting the development of the sustainable debt market to provide valuable support for expanding energy transition investment and financing. We hope that this report, along with leading insights in the industry, can help regulators and market participants address energy transition and seize opportunities to advance global sustainability goals." On November 26, the Dubai Financial Services Authority and the Hong Kong Monetary Authority will hold a joint Climate Finance Conference in Dubai, where there will be discussions on the key findings of the report.