Author Archives: hksar gov

     Following is the speech by the Under Secretary for Financial Services and the Treasury, Mr Joseph Chan, at the US-China High-level Event on Subnational Climate Action in Berkeley, the United States, on May 29 (California time):
 
Distinguished panellists, ladies and gentlemen,
 
     Good afternoon. It’s my great pleasure to join you at this US-China High-level Event on Subnational Climate Action.  
 
     As mentioned in this morning’s Bay-to-Bay Dialogue between the California Bay Area and the Guangdong-Hong Kong-Macao Greater Bay Area, the urgency of combating climate change has never been greater, hence demand for green and sustainable finance is enormous. A report estimated that the world’s annual climate investments would reach US$9 trillion by 2030, and US$10 trillion by 2050. 
 
     Hong Kong is China’s international financial centre, and we lead on various league tables in Asia, including arranging Asian international bond issuance, insurance density, cross-border wealth management, etc. As Asia’s leading international financial centre, Hong Kong is well positioned to channel investment to the green transformation of the economy in China, Asia and beyond, playing our part as a member of the global village to combat climate change for our future generations together. 
 
     As our Financial Secretary mentioned earlier, Hong Kong has already become the largest centre for arranging green and sustainable bond issuance in Asia for consecutive years, accounting for 37 per cent of the Asia market last year. The depth of our sustainable finance is not only limited to the sell side. On the buy side, by the end of last year, there were 219 ESG (environmental, social, and governance) funds authorised by the Securities and Futures Commission in Hong Kong, with total assets under management (AUM) of US$170 billion. The number of ESG funds and the total AUM of ESG funds grew by 24 per cent and 20 per cent respectively on a year-on-year basis. In addition to our scale and growth in green finance, Hong Kong has also become a pioneer in developing new green financial products. The first Asian Green Bond Exchanged Traded Funds (ETFs) and Asia’s first Retail Certificate of Green Deposits were also issued in Hong Kong.
 
     The Hong Kong SAR (Special Administrative Region) Government has led by example by issuing close to US$25 billion equivalent in green bonds since 2019 under our Government Green Bond Programme, with different tenors ranging from one year to thirty years, with different currencies including HKD, RMB, EUR and USD, as well as with different types of offerings including institutional, retail and tokenised tranches. These issuances provide benchmark pricing for potential issuers and enrich our sustainable finance ecosystem. 
 
     Indeed, last year Hong Kong became the first government in the world that issued tokenised Government Green Bond, and we recognise the importance of combining green finance and fintech to further improve the efficiency of channeling green capital to combat climate change. We launched in March this year the “Prototype Hong Kong Green Fintech Map” to provide one-stop information on the current status of green fintech companies in Hong Kong and related services. In addition, next month we will launch the Green and Sustainable Fintech Proof of Concept Subsidy Scheme, which will provide early-stage funding support for green fintech, facilitating commercialisation and fostering the development of new green fintech initiatives. 
 
     Ladies and gentlemen, under “one country, two systems”, with free flow of capital, common law system and our simple and low tax regime, Hong Kong will continue to work closely with our friends in both bay areas to facilitate green investment from around the world to support the green projects, green products and green technologies in the two bay areas, contributing to the effort in combating climate change by our two nations, and by the world. Thank you.

  

     Following is the speech by the Secretary for Transport and Logistics, Mr Lam Sai-hung, at the US-China High-Level Event on Subnational Climate Action in Berkeley, the United States, on May 29 (California time):
 
Ladies and gentlemen,
 
     I would like to share with you the efforts of the Government of the Hong Kong Special Administrative Region (HKSAR) in clean energy and low carbon innovations, in particular in the realm of green shipping.
      
     The expansion of the global economy and trade, movement of goods and people across the oceans has brought about increase in maritime traffic, which has environmental implications consequentially. Meanwhile, the idea of environmental, social and governance, or ESG in short, has been gaining momentum in the business world, including the maritime and port industry. 
      
     It is against this backdrop the HKSAR Government decides to steer the future growth of our maritime and port industry towards green shipping. As an international maritime centre enshrined in the National 14th Five-Year Plan, Hong Kong is ranked fourth in the 2023 Xinhua-Baltic International Shipping Centre Development Index Report. In addition to having one of the busiest ports globally, we are also home to the fourth largest shipping registry in the world. It follows that our efforts in promoting green shipping will not only improve our city’s environment, but also bring about positive impact to the local and international shipping community.
 
Decarbonisation in shipping
 
     In December last year, the HKSAR Government promulgated the Action Plan on Maritime and Port Development Strategy to consolidate and enhance Hong Kong’s position as an international maritime centre. The very first strategy of the Action Plan is to develop Hong Kong into a green shipping hub, with net zero-carbon emission being our eventual goal. Our key actions could be summarised into three “greens” – green port, green fleet and green expertise. 
      
     First, in terms of green port, we are studying the feasibility of providing green fuel bunkering for both local and ocean-going vessels, and are set to promulgate another action plan within this year to lay out our strategies for the development of bunkering facilities and supply chains. In parallel, we are taking forward the relevant preparatory work to facilitate the provision of liquefied natural gas bunkering. 
      
     Furthermore, the HKSAR Government is studying the installation of onshore power supply at the Kai Tak Cruise Terminal and the possibility of wider application of onshore power supply at other locations in Hong Kong.
      
     Second, to support the development of Hong Kong’s green fleet, we have set aside some US$8 million to provide incentives for Hong Kong-registered ships that attain high ratings in the Carbon Intensity Indicator of the International Maritime Organization (IMO). Once launched, which will be within a month from now, Hong Kong will be a pioneer flag administration supporting the IMO’s green shipping policy on the Carbon Intensity Indicator.
      
     Third, with a view to cultivating green expertise in shipping, we are working to formulate green shipping guidelines for our local industry, as well as line up more training for capacity building, so that our shipping industry and workers could keep abreast of the latest developments in green shipping. 
 
Conclusion
 
     Environment preservation and economic development are never competing agendas. By promoting clean energy and low carbon solutions in transport, logistics and other areas, not only will we contribute to the global fight against climate change, but will we also enhance the competitive edge of our economy and industries. Hong Kong stands ready to collaborate and exchange with our peers on the international stage at this forum and beyond. Thank you. 

  

     Following is the speech by the Financial Secretary, Mr Paul Chan, at the US-China High-level Event on Subnational Climate Action in San Francisco, the United States, on May 29 (California time):

Distinguished panellists, ladies and gentlemen, 

     Good afternoon.

     It’s a pleasure to join you, and this prestigious panel discussion, following this morning’s enlightening Bay-to-Bay Dialogue. 

     Climate change affects everyone. Last year was the hottest year on record, globally, and each of the first four months of this year continues to break heat records. 

     The first global stocktake of the Paris Agreement took place at the recent COP28 in Dubai. It affirmed that we are not on track to limiting global warming to 1.5 degrees Celsius.  

     That said, I take encouragement in the embrace of green transition among some countries and economies. China has made clear its targets – peaking carbon dioxide emissions before 2030, and achieving carbon neutrality before 2060. 

     It helps, and enormously, that China is pursuing high-quality economic and social development, and core to them is comprehensive green transformation. 

     China’s installed capacity of wind, solar, hydro and biomass generation tops the world. It has also become a major supplier of renewable energy equipment and storage, pushing down the costs associated with renewable energy, making clean energy more affordable for developing countries.

     The International Energy Agency has estimated that, by 2030, electric vehicle (EV) sales worldwide, will reach some 145 million.

     If we are to rid the world of carbon emissions and the pollution of fossil-fuel vehicles, EV adoption must continue to rise.

     Hong Kong is committed to achieving carbon neutrality by 2050. We are adopting a four-pronged strategy to reach neutrality: net-zero electricity generation, green buildings, green transport and waste reduction.

     Indeed, we were among the first cities in Asia to take action against climate change. Our involvement goes back to 1997, when we stopped construction of new coal-fired power plants. 

     Our carbon emissions peaked in 2014 and have shown a general downward trend since. That’s thanks to the gradual replacement of coal with natural gas and zero-carbon sources for power generation. In 2022, our per capita emissions were 4.55 tonnes, down from 6.2 tonnes about a decade ago.

     We have also placed enormous efforts to the low-carbon transformation of our transport sectors. 

     In transport, alongside our world-class public-transport network, we are focused on new-energy vehicles.

     The ratio of electric vehicles among all newly registered private passenger cars in Hong Kong has soared in recent years, from 6.3 per cent in 2019 to 78 per cent in the first quarter of 2024. 

     In February, one of Hong Kong’s major bus companies put in service the first hydrogen bus in its fleet. Later this year, we’ll do a trial run of hydrogen street-washing vehicles. 

     Beyond achieving carbon neutrality, we are committed to green and sustainable progress, regionally and globally. 

     More than one-third of Asia’s green and sustainable bond issuances were arranged in Hong Kong. We also participate in international green standard-setting. In addition, we have aligned our green taxonomies with the best international standards and devote resources to nurturing talent to support the region’s green development. 

     In March, we published a vision statement, setting out our approach to developing a comprehensive ecosystem for sustainability disclosure in Hong Kong. 

     As a first step, our Stock Exchange has published new climate-related disclosure requirements for publicly listed companies, with implementation beginning in January 2025, under a phased approach.

     We are committed to green technology, too. We offer capital and R&D (research and development) support, as well as facilitation measures to nurture green start-ups and talent. 

     Science Park and Cyberport, our flagship innovation and technology research centres, together count more than 200 green start-ups and companies. They offer advanced technological solutions to tackle environmental issues and challenges. Some of these companies are already expanding their business in overseas markets. 

     We are building our capacity building as well. Hong Kong is home to five of the world’s top 100 universities, along with outstanding researchers in numerous advanced technology areas, including green technology.

     We welcome US companies, tech firms and researchers, including green tech experts, to join us in Hong Kong to help build the future.

     A good start in our co-operation is the intention on financial co-operation signed between Hong Kong’s Financial Services and the Treasury Bureau and the California-China Climate Institute. 

     They cover climate-risk analysis and management, as well as nurturing and developing talent.
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     Before I close, let me reiterate the significance of today’s high-level forum: with China and the United States being world’s top two largest economies, any collaboration between the two countries on the climate front will be nothing but a synergetic strong force driving the green and sustainable development of the earth that we share. And today’s event represents an important part of this collaborative effort. Co-operation at the subnational level provides impetus to the advancement of this vision.

     For Hong Kong, we look forward to working with our counterparts in the two bay areas to strengthen our global climate advocacy, to ensure that our climate action is enabled by a free flow of green technologies and products.

     With that in place, we’re on our way to creating a sustainable, carbon neutral and climate-resilient global village. 

  

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