As the world intensifies its focus on climate action and sustainable finance, two pivotal events—one in Hong Kong and the other in Addis Ababa—have spotlighted the urgent need for innovative solutions and international cooperation. On September 8, 2025, at the opening of Hong Kong Green Week, Financial Secretary Paul Chan addressed the eighth Hong Kong Green Finance Association Annual Forum, laying out a vision for the city’s role in the rapidly evolving landscape of transition finance. Just a day earlier, in Ethiopia, United Nations Under-Secretary-General Claver Gatete delivered a rousing closing statement at the 13th Conference on Climate Change and Development in Africa (CCDA-XIII), setting forth a comprehensive agenda for the continent’s climate future.
Both gatherings, while separated by geography and context, underscored a common theme: the world’s transition to a low-carbon economy is not only a matter of environmental necessity, but also a tremendous financial and developmental opportunity—one that demands creativity, partnership, and, above all, action.
In Hong Kong, Chan’s remarks signaled a strategic pivot. “Hong Kong obviously has the potential to become a transition-finance hub,” he stated, emphasizing the city’s readiness to help companies shift from high-carbon to low-carbon operations. According to the South China Morning Post, Chan acknowledged that transition finance—distinct from broader sustainable finance—remains a modest slice of the market, but it is “gaining traction and offers considerable potential.”
Transition finance, as defined by industry experts, refers to the capital that enables businesses and sectors with high emissions to decarbonize their operations. It stands apart from green finance, which typically funds already sustainable or low-carbon projects. This distinction is crucial: while green finance supports the cleanest players, transition finance tackles the hard-to-abate sectors that are essential to meeting global climate goals.
The numbers are staggering. Chan highlighted that China was expected to invest approximately US$820 billion in energy transition in 2025, accounting for nearly 40 percent of the global total. The Asia-Pacific region, he noted, saw its transition investments surpass US$1 trillion for the first time in 2024—more than double the amount invested in the Americas. “High-net-worth individuals had robust interest in transition investing, resulting in great potential for developing innovative, climate-focused financial products that cater to market appetite,” Chan remarked.
This surge in interest isn’t limited to institutional investors or government initiatives. There’s a growing appetite among private investors for climate-aligned products, a trend that could unlock new funding streams for companies seeking to decarbonize. In Chan’s view, Hong Kong is uniquely positioned to harness this momentum, leveraging its deep capital markets and global connectivity.
Meanwhile, in Addis Ababa, the three-day CCDA-XIII conference concluded with a clarion call for a unified African climate agenda. Claver Gatete, representing the United Nations Economic Commission for Africa, addressed delegates from across the continent and beyond. “This conference was not an end in itself. Rather, it is a bridge that links evidence with ambition, technical depth with political momentum and Africa’s aspirations with actions,” Gatete declared, according to the official conference transcript.
The conference set the stage for the Second Africa Climate Summit (ACS2) and Africa’s common voice for the upcoming COP30 negotiations. Six priorities emerged as the backbone of the Addis Ababa Declaration, which will guide Africa’s climate strategy in the months ahead.
First and foremost was adaptation, resilience, and loss and damage. Africa, Gatete noted, faces a staggering US$160 billion annual adaptation funding gap—a burden the continent cannot shoulder alone. “It is neither fair nor sustainable,” he said, urging the international community to provide urgent, predictable, and scaled-up support. The operationalization of the Loss and Damage Fund, with equitable governance and accessibility, was identified as a top priority to address not just economic losses but also the cultural and ecological heritage at risk.
Second, the conference called for closing Africa’s climate data and knowledge gaps. “Without data, we are navigating in the dark,” Gatete warned. Investments in early warning systems, integration of indigenous knowledge with artificial intelligence and satellite technology, and a stronger science-policy interface were all highlighted as essential steps to empower African negotiators and policymakers.
Third, the transformation of climate finance took center stage. Africa’s current reliance on aid, coupled with the world’s highest borrowing costs, has hampered progress. The conference advocated for reforms to the international financial system to lower these costs, cancel or reschedule debt, and promote innovative tools such as debt-for-climate swaps, blended finance, green and blue bonds, and fair credit ratings. Transparent, high-quality carbon markets that deliver direct benefits to African development were also championed.
The fourth priority focused on just transitions and energy access. The scale of the challenge is immense: more than 600 million Africans still live without electricity. “Surely, this cannot be an acceptable situation in the 21st century given increasing decline in renewable energy costs,” Gatete said. The path forward, he argued, lies in harnessing Africa’s critical minerals for local value addition, deploying a full spectrum of clean energy solutions, and prioritizing green jobs, retraining, and the empowerment of women and youth.
Fifth, the importance of ecosystems and nature-based solutions was underscored. Africa’s natural assets—ranging from the Congo Basin to mangroves, wetlands, and savannahs—are not just regional treasures but “global lifelines.” Protecting these ecosystems demands fair global valuation, investment, and recognition. The conference committed to expanding community-led stewardship and leveraging digital innovations to connect nature-based solutions with agriculture, forestry, and renewable energy.
Finally, the sixth priority addressed governance, partnerships, and global responsibilities. Strengthening institutional coherence and embedding climate action into national development plans were seen as essential. The conference also called for the international community to honor its climate finance commitments and to reform global trade and carbon taxation regimes to better support Africa’s growth.
“Taken together, these six priorities represent a comprehensive, coherent African climate agenda. An agenda anchored in evidence. An agenda driven by justice. And an agenda designed for impact,” Gatete concluded. The outcomes of CCDA-XIII will inform the Addis Ababa Declaration, guide the 2nd Africa Climate Summit, and shape Africa’s negotiating stance at COP30.
From Hong Kong’s ambition to lead in transition finance to Africa’s determination to forge a just and evidence-based climate path, these parallel developments illustrate the diversity and dynamism of global climate action. As the world grapples with the intertwined challenges of decarbonization, adaptation, and equitable growth, it’s clear that innovation, partnership, and resolve will be the keys to unlocking a sustainable future.