HKMA and DFSA Report Highlights Sustainable Debt Opportunities in Emerging Markets
Terrill Dicki Nov 18, 2025 08:48
The HKMA and DFSA's joint report explores sustainable debt potential in MENA and APAC, emphasizing growth opportunities and market innovations.
The Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) have jointly published a comprehensive report titled Scaling Sustainable Debt in Emerging Markets. The report, developed with BloombergNEF as a knowledge partner, examines the potential of labeled debt in facilitating sustainable development across emerging markets, according to the Hong Kong Monetary Authority.
Growth Potential in Sustainable Debt
The report highlights that sustainable debt markets in the Middle East and North Africa (MENA) and emerging Asia Pacific (APAC) regions have significant room for expansion. Many issuers are currently financing sustainable projects using unlabeled instruments, suggesting a gap in the market that could be addressed. The report suggests that government support to offset labeling costs and provide guidance could ease market entry challenges for issuers. Moreover, it encourages expanding beyond the green label and traditional structures to foster growth.
Case Studies and Market Innovations
The report includes case studies demonstrating innovations in sustainable finance that go beyond conventional labels and structures. Notable examples include a blue bond issued by DP World, a sustainability-linked loan bond from Emirates NBD, and a long-tenor green bond and loan from MTR Corporation Limited. These case studies exemplify the diverse opportunities available in sustainable finance.
Industry Insights and Future Prospects
Mark Steward, Chief Executive of the DFSA, emphasized the value of the research in understanding the evolution of sustainable debt in the MENA and APAC regions. He noted the record US$94 billion in sustainable debt issuances in 2024, reflecting growing investor confidence and market resilience.
Eddie Yue, Chief Executive of the HKMA, highlighted sustainable debt as a vital tool for addressing the climate financing gap in emerging markets. He affirmed Hong Kong's commitment to leveraging its expertise in sustainable finance to support these markets in achieving their development goals.
Jon Moore, Chief Executive of BloombergNEF, underscored the importance of sustainable debt in building trust and transparency within financial markets. He stated that the efforts of HKMA and DFSA would help scale up finance and investment for energy transition, offering valuable insights for regulators and market participants.
Upcoming Discussions and Conferences
The insights from the report are set to be discussed at the DFSA–HKMA Joint Climate Finance Conference on 26 November in Dubai. This conference aims to further explore the opportunities and challenges in scaling sustainable finance across emerging markets.
The full report is available for those interested in a deeper dive into the findings and recommendations outlined.
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