Following is a question by the Hon Chan Hak-kan and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (February 12):

Question:

     Regarding the Action Plan on Green Maritime Fuel Bunkering (the Action Plan) promulgated by the Government last year, will the Government inform this Council:

(1) given that the Action Plan proposes to "adopt a multi-fuel strategy", but it is learnt that at present, there are many types of green maritime fuels in the market, and most of them are at an early stage of development, while investments in the diversified development of fuels will not only increase the operational burden on investors, but also reduce the cost-effectiveness of such investments, whether the authorities will expeditiously specify the "designated fuels" and set relevant standards, carbon reduction targets, timetables, etc, so that investors can concentrate their resources and carry out long-term development planning;

(2) as it is learnt that at present, the Mainland is already one of the major producers of maritime fuels such as bio-diesel and green methanol, and the related technologies have become relatively mature, how the authorities will, through administrative measures, support Hong Kong enterprises in fully grasping the advantage of enjoying the strong support of the motherland to build Hong Kong into a maritime fuel bunkering centre; and

(3) given that the Action Plan proposes to set up a Green Maritime Fuel Bunkering Incentive Scheme within this year to encourage pioneer companies to develop green maritime fuel bunkering business in Hong Kong, when the authorities will announce the details of the Scheme?

Reply: 

President,

     The maritime industry accounts for about three per cent of the world's carbon emissions. In order to reduce maritime operations' negative impact on the environment, the International Maritime Organization (IMO) has set out a target of achieving net-zero carbon emissions from international shipping by or around 2050. There are many ways to reduce emissions, including adoption of energy saving technologies, switching to more energy-efficient vessels, usage of smart maritime technologies, among which the use of green maritime fuels is by far the most effective. Therefore, the industry has started to switch to using low or even zero-carbon green maritime fuels. Hong Kong must enhance its green maritime fuel bunkering capabilities to respond to market needs, so as to give full play to our advantage of our excellent geographical location and our position as a major bunkering port in South China, consolidate Hong Kong's position as an international maritime centre, and maintain the competitiveness of our port.

     The Government promulgated the Action Plan on Green Maritime Fuel Bunkering (Action Plan) in November last year, setting out clear targets with five strategies and 10 action measures with an aim to develop Hong Kong into a green maritime fuel bunkering centre. The Government has received strong support from the industry and maintained positive communication with Legislative Council members since the promulgation of the Action Plan. Various domestic and international players from different parts of the green maritime fuel bunkering supply chain have also expressed their interest in developing relevant businesses in Hong Kong.

     Regarding the Hon Chan Hak-kan's questions, the reply is as follows: 

(1) Currently, a number of green maritime fuels, including biodiesel, liquefied natural gas (LNG), green methanol, green ammonia and hydrogen are being used or tested by the industry, but not a single type of green maritime fuel is being particularly favoured. According to publicly available information on new vessels on order, by 2030 we expect that there will be over 1 000 vessels capable of being powered by LNG and nearly 400 methanol ones by 2030, as well as a number of hydrogen and green ammonia vessels in the world. Meanwhile, as most of the vessels that can use green maritime fuels will likely have dual-fuel engines, these vessels as well as the other traditional ones not yet due for replacement will likely adopt biodiesel, which is cheaper than other green maritime fuels currently, to reduce emission in the short term.

     Taking into consideration the current trend in the maritime industry to retrofit or build new vessels powered by different green maritime fuels, the aforementioned figures, the high investment involved in ordering or retrofitting vessels, and that new vessels can generally operate for around more than 20 years after delivery, we expect diversified development in the green maritime fuel bunkering market in the coming decades. On one hand, Hong Kong will adopt a "multi-fuel" strategy like major ports such as Singapore, Rotterdam and Shanghai. But on the other hand, as mentioned in Hon Chan Hak-kan's questions, we aim to provide a clear orientation on fuel options to the industry and the society, including making biodiesel bunkering immediately available, developing LNG and green methanol bunkering in the short- and medium-term respectively, and considering the development of the bunkering of hydrogen and green ammonia in the long run.

     Following the aforementioned orientation and development directions, there are several actions we are about to implement, including: 
 

• in terms of LNG, we issued the Code of Practice (CoP) on LNG bunkering in January and the trade will soon conduct the first ship-to-ship LNG bunkering in Hong Kong waters this week;
• on green methanol, we will within this year invite the industry to submit expressions of interest in relation to developing green methanol storage facilities on a site in Tsing Yi South, and complete the CoP on green methanol bunkering; and
• as for hydrogen and green ammonia, we will simultaneously commence a feasibility study on the future bunkering of these fuels within this year, with a view to setting out a clear development direction.

     As regards standards on green maritime fuels, the IMO expects to finalise a number of mid-term measures within this year, which are expected to enter into force around 2027 and among which the "Green House Gas (GHG) fuel standard" will require the phased reduction of the GHG intensity of maritime fuels. As an Associate Member of IMO, Hong Kong will respond and follow the requirements in this regard.

(2) Establishing a stable green maritime fuel supply chain is one of the action measures set out in the Action Plan. Given Hong Kong's proximity to the Mainland, which is a major producer of a number of green fuels, we expect that most of Hong Kong's green maritime fuels will be imported from the Mainland. In fact, currently some Hong Kong companies have already set up production facilities in different provinces and cities in the Mainland, including Inner Mongolia and Foshan, to produce green maritime fuels, while some Hong Kong and Mainland producers have expressed interest in providing such fuels to Hong Kong. Such stable green maritime fuel supply chain can also allow Hong Kong to take advantage of its robust and resilient financial system, good business environment, and regulatory regime in line with international standards, to develop into an international green maritime fuel trading centre.

     At present, the Government will actively foster the conclusion of green maritime fuel offtake agreements by shipping companies interested in bunkering such fuels in Hong Kong. The Marine Department has set up a dedicated team to provide one-stop services for relevant companies, so as to help build a systematic and organic supply chain in Hong Kong. 

(3) As for the Green Maritime Fuel Bunkering Incentive Scheme, it aims to encourage pioneer enterprises to start green maritime fuel bunkering businesses in Hong Kong. At present, we are formulating the details of the scheme, and expect to establish the scheme in 2025 and will announce it in due course.

     Thank you, President.

     President Xi Jinping delivered an important speech at the National Conference on Education last September, following which the 2024-2035 master plan on building China into a leading country in education (master plan) was issued, setting out a roadmap for the national education development in the next 10 years. The Hong Kong Special Administrative Region (HKSAR) Government today (February 12) held a seminar on the master plan at the Central Government Offices. Vice Minister of Education Mr Wu Yan was invited to deliver a keynote speech to enable different sectors to obtain a deeper understanding of the significance of the master plan. The Chief Secretary for Administration, Mr Chan Kwok-ki, and the Secretary for Education, Dr Choi Yuk-lin, delivered the opening and closing addresses respectively.
      
     The master plan is the first national action plan themed on building a leading country in education with the key mission to support the country's modernisation in all aspects. It clearly proposed to establish a mechanism for co-ordinating and promoting the integration of education, technology and talent by leveraging the support of education to technology and talent. The master plan also set out the close collaboration with the development of the innovation and technology hub in the Guangdong-Hong Kong-Macao Greater Bay Area and the building of a high-calibre talent hub and platforms for talent attraction and retention, thereby enhancing the overall effectiveness of the innovation system.
      
     Speaking at the seminar, Mr Chan said that the Resolution of the Communist Party of China (CPC) Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization adopted in the Third Plenary Session of the 20th Central Committee of the CPC suggested that Hong Kong be built into an international hub for high-calibre talent. The HKSAR Government has been proactively creating favourable room for development for talent from different backgrounds, and fostering synergistic development of nurturing talent, gathering talent and science and technology, to enable talent to make Hong Kong their home and give full play to their strengths for contribution to the high-quality development of Hong Kong and the country.
      
     He pointed out that the HKSAR Government established the Committee on Education, Technology and Talents with him as the Chairman at the end of last year to enhance the systemic, holistic and synergistic nature of policies, which target the manpower demand of Hong Kong's strategic positioning of "eight centres". It aims to promote integrated development of education, technology and talent from the top and fully implement the work of invigorating the country through science and education.
      
     Speaking at the seminar, Dr Choi said that with the rapid development of education in the country in the coming 10 years, Hong Kong's education will also thrive. The Education Bureau (EDB) will keep its principles and be innovative to tie in with the national strategy of invigorating the country through science and education, and grasp the development opportunities offered by the country's initiatives such as the Belt and Road and the Greater Bay Area to push forward with Hong Kong's education development.
      
     She stressed that the EDB will deepen Hong Kong's role as an international post-secondary education hub, pooling together talent with a view to consolidating and developing Hong Kong's education strengths. Apart from boosting the comprehensive strengths of tertiary education and forging new development competitive edges with digital education, the EDB will also create multiple pathways for young generations, further enhance students' whole-person development, and raise teachers' professional qualities and capabilities to achieve the goal of cultivating values and nurturing people.
      
     A number of participants also shared their views at the seminar.
      
     The seminar today was attended by around 400 participants, including representatives from the Ministry of Education, the Hong Kong and Macao Work Office of the CPC Central Committee, and the Hong Kong and Macao Affairs Office of the State Council; Hong Kong deputies to the National People's Congress; Hong Kong Standing Committee members of the Chinese People's Political Consultative Conference; members of the Legislative Council Panel on Education; the EDB directorate; representatives from the councils of universities and post-secondary institutions; representatives from school councils and principals' associations in relation to kindergartens, primary schools and secondary schools, and representatives from relevant education organisations and advisory and statutory bodies.

          

     The effective exchange rate index for the Hong Kong dollar on Wednesday, February 12, 2025 is 107.4 (same as yesterday's index).

     The effective exchange rate index for the Hong Kong dollar on Wednesday, February 12, 2025 is 107.4 (same as yesterday's index).

     The Commissioner for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, Ms Maisie Chan, will begin her duty visit to Bangkok, Thailand, tomorrow (February 13) to promote Hong Kong and the development opportunities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
 
     Tomorrow (February 13), Ms Chan will attend a business luncheon, "Unlocking New Horizons: Hong Kong and the Greater Bay Area as a Hub for Global Business and Finance", organised by the Hong Kong Economic and Trade Office in Bangkok. Ms Chan will deliver a keynote address to promote the strong impetus for growth and the development potential of the GBA. Under the "one country, two systems" principle, Hong Kong serves as the GBA's international entry point that can help global enterprises tap into the vast business opportunities in the GBA. The Under Secretary for Financial Services and the Treasury, Mr Joseph Chan, will also be invited to speak at the luncheon.
 
     During her stay in Bangkok, Ms Chan will call on the Chinese Embassy in the Kingdom of Thailand and meet with local business leaders, and representatives of financial institutions. She will also attend a dinner reception with the Thai Chamber of Commerce to promote the development opportunities of the GBA.
 
     Ms Chan will conclude her visit and return to Hong Kong on February 14.