Financial Secretary Paul Chan said Hong Kong can build a thriving impact investment ecosystem to help fund projects that promote sustainable development.

In a blog post published on Sunday, Chan said green transformation and sustainable development are crucial as the world faces grapples with climate change and extreme weather conditions.

However, he said there is a huge funding gap in this area and funds from the private market must be involved.

Chan said that Hong Kong, a global financial centre that gathers family offices, charities and other foundations, must work together on projects with social benefits.

Start-ups in the SAR also play an important role with their advanced technologies and innovative products, he added.

The finance chief noted that the Asia-Pacific region is increasing investment in sustainable development, with China becoming an important contributor and innovator in the world's green transformation.

Chan said when he attended the Hong Kong Green Week last week, many participants expressed their respect for China.

“They pointed out that while some western countries are showing less enthusiasm and commitment in addressing climate change, the Asian region, especially China, is still actively promoting sustainable development and taking up an leadership role, which is worthy of respect,” he said.