---
title: "The scale of global transformative finance is expected to reach USD 7.4 trillion annually, with a financing gap of up to 80%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283120673.md"
description: "According to a report from the Hong Kong Monetary and Financial Research Centre, the global financing demand for transformative finance is expected to reach USD 7.4 trillion annually from 2024 to 2030, but the actual financing amount is less than one-fifth of that, resulting in a significant funding gap. The survey shows that 60% of participating institutions are involved in or exploring transformative finance, and 74% expect the market to stabilize or grow in the next three years. The report points out that the industry faces challenges such as vague definitions and high costs, and it suggests attracting private capital through mixed financing models. As an international financial center, Hong Kong has advantages that can fill the funding gap and promote sustainable development"
datetime: "2026-04-17T09:30:07.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283120673.md)
  - [en](https://longbridge.com/en/news/283120673.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283120673.md)
---

# The scale of global transformative finance is expected to reach USD 7.4 trillion annually, with a financing gap of up to 80%

The Hong Kong Monetary and Financial Research Centre under the Faculty of Finance has released a research report indicating that the global financing demand for transformative finance could reach up to USD 7.4 trillion annually from 2024 to 2030, yet the actual financing amount is less than one-fifth of that, resulting in a significant funding gap. The report's survey shows that 60% of the responding institutions have participated in or are exploring transformative finance, with the market being cautiously optimistic about the prospects; 74% of institutions expect the global market to remain stable or grow in the next three years, with the Asia-Pacific region being the most optimistic at 91%.

## Ambiguous Definitions and High Costs as Industry Pain Points

The research centre conducted a survey and in-depth interviews covering global financial institutions and multilateral organizations. The results revealed that the industry faces challenges such as mismatched risk-return profiles, ambiguous definitions of transformative projects, high administrative costs, and inconsistent regional standards. Responding institutions indicated that stocks, funds, and bonds are currently the most commonly used financing tools, and as the market matures, these tools are expected to become more specialized. Respondents also noted that collaborative models such as blended finance could enhance project risk-return profiles and attract private capital.

## Faculty of Finance: Hong Kong Can Leverage Its Super Connector Advantage

The Chief Executive Officer of the Faculty of Finance and Executive Director of the Research Centre, Feng Yinluo, stated that the energy price fluctuations triggered by the Middle East situation are cyclical, and countries are promoting energy supply diversification, with developing countries' enthusiasm for green transformation remaining undiminished. He pointed out that Hong Kong, as an international financial centre, possesses a mature market, a sound legal system, and a regulatory framework aligned with international standards. The regulatory authorities of the Special Administrative Region actively participate in international forums to promote regulatory alignment and regional cooperation, which helps strengthen Hong Kong's position as a sustainable finance hub.

The report recommends maintaining regulatory and policy clarity, deepening regional cooperation, and utilizing financial technology to simplify data collection, project certification, and audit disclosure processes to enhance efficiency. Feng Yinluo emphasized that the industry is attracting family offices and charitable organizations through innovative models such as risk layering and blended finance, thereby boosting market confidence. With its professional services and talent advantages, Hong Kong can seize opportunities in transformative finance, fill the funding gap, and promote sustainable development

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