Hong Kong is taking significant steps towards becoming a global leader in green technology, as demonstrated by the recent InvestHK and Deloitte China event. The launch of the study titled “Hong Kong’s Path to Carbon Neutrality: Guide to Navigate the Green Tech Market” highlights the city’s potential to emerge as a hub for green technology, showcasing its strategic advantages and commitment to carbon neutrality.
The report, presented on December 11, outlines how Hong Kong can align with the global emphasis on climate action, especially following recent international pledges like COP29’s US$300 billion commitment to climate finance. It focuses on five key sectors – power and new energy, green mobility, sustainable built environment, waste reduction and management, and biodiversity – where Hong Kong is well-positioned to capitalize on current global investment trends.
At the launch event, attended by over 100 stakeholders including industry leaders, investors, and sustainability experts, the convergence of traditional strengths and the rapid growth of the green technology sector was evident. Discussions centered around recent trends and opportunities available to startups and established firms alike.
The report highlights the importance of constructing greener buildings, as they account for the largest share of energy consumption in the city. This presents a significant opportunity for companies to use Hong Kong as a showcase for their solutions and to ease their entry into other global markets, including the Middle East and Southeast Asia.
Hong Kong’s position as a gateway between East and West is particularly advantageous as the global climate technology scene evolves. China’s share of investment in green technology has increased significantly from 6% to 22% between 2000 and 2023, while the US has seen a decrease from 76% to 49%, indicating a shift in dynamics.
However, the report also identifies three major barriers to adoption of green technology in Hong Kong – weak demand-side push, ecosystem gaps, and a limited talent base. These challenges are being addressed through the city’s Climate Action Plan 2050, which outlines solid policy directions for renewable energy, energy efficiency, low carbon transport, and waste management.
With Hong Kong being the largest venue for offshore green bonds, it is well-positioned to mobilize the significant funding – approximately RMB138 trillion – needed for China’s shift to carbon neutrality by 2050. The report also discusses specific strategies across various sectors to optimize existing resources.
Overall, the launch of this study highlights Hong Kong’s potential to become a global leader in green technology and its commitment to achieving carbon neutrality. By leveraging its strategic advantages and addressing challenges, the city is well-positioned to capitalize on the growing global demand for sustainable solutions.