More Allocation for Green Measures in Hong Kong Will Enable the SAR to Achieve Sustainable Development
In a recent address at the Asia-Pacific Business Forum (APBF) 2023, Financial Secretary Paul Chang highlighted Hong Kong’s remarkable progress in decarbonisation and its pivotal role in the broader green transition across the Asia-Pacific region. The forum, attended by prominent leaders and ministers, underscored the urgency of combating climate change and the need for collaborative efforts. Chang also emphasised why Hong Kong allocates USD 30 billion for green measures.
As world leaders acknowledge the profound challenges posed by climate change, it is estimated that Asia alone requires a staggering US$66 trillion in investments over the next thirty years. Hence, Chang emphasised the necessity of mobilising private sector resources to complement government efforts.
Efforts Towards Greener Hong Kong
For a complex and highly populated city, Hong Kong is making significant strides towards carbon neutrality. Chang outlined the four major decarbonisation strategies employed by the Hong Kong SAR government:
- Net-Zero Electricity Generation: Phasing out coal and increasing zero-carbon energy to 60-70% by 2035, aiming for zero carbon emissions in electricity generation before 2050.
- Energy-Efficient Buildings: Promoting green buildings and a sustainable lifestyle to reduce electricity consumption in commercial and residential buildings by 30-40% and 20-30%, respectively, by 2050.
- Green Transport: Ceasing new registrations of fuel-propelled and hybrid private cars by 2035, promoting new-energy transport, and witnessing over 60% of newly registered private cars being electric vehicles in the year’s first half.
- Waste Reduction: Reducing municipal waste and developing state-of-the-art waste-to-energy facilities.
Hong Kong aims to position itself as an international centre for green finance. Last year, the city witnessed a remarkable 40% increase in total green and sustainable debt issuance, exceeding USD 80 billion. The amount of green and sustainable bonds arranged in Hong Kong accounted for one-third of Asia’s total issuance. Since the launch of Core Climate on the Hong Kong Stock Exchange in October last year, Hong Kong marked a significant milestone. Through settling voluntary carbon credits in Hong Kong dollars and renminbi, the SAR aspires to become a global market for high-quality, voluntary carbon credits.
Going Global Green Finance Centre
Chang highlighted Hong Kong’s thriving green technology sector, with research teams and start-ups in universities, Science Park, and Cyberport contributing innovative solutions to overseas markets. Hong Kong aspires to become a global green tech and green finance centre with a comprehensive financial and industry chain. In the next 15 to 20 years, the Hong Kong government plans to allocate USD 30 billion for green measures. The government is also anticipating a boost from private-sector investment as companies recognise the benefits of embracing green practices.
Financial Secretary Paul Chang’s remarks showcased Hong Kong’s commitment to sustainability, positioning the city as a trailblazer in the global green transition and a driving force in the Asia-Pacific region.
Business Opportunities with Clarity, with 3E Accounting
As climate change affects our ecosystem, businesses should begin looking at the opportunities presented by the government’s green measures. If you are concerned about how your business can benefit from green measures implemented by the government, contact us, and we will provide an extensive explanation to ease any worries you may have.