appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

David Liao

There are few international financial centres situated so close to nature as Hong Kong. On a good day I can reach the beach within 20 minutes from my desk; in under an hour, I can stand among the birds and frogs of the Yuen Long wetlands. The Hoi Ha Wan Marine Park, host to more than 60 species of coral, is only 20km or so away from Mong Kok, one of the most densely populated neighbourhoods on the planet.
So it is entirely appropriate that Hong Kong, long a hub of global capital, has become a green finance champion. The local government is already the largest green bond issuer in the Asia-Pacific region, propelling the development of the corporate market.
Environmental considerations feature in almost every conversation I have with business leaders. That suggests there is an opportunity for our city to model how to protect biodiversity and limit emissions at home, while increasing financial support for Asia’s climate transition.
Hongkongers are already feeling the effects of climate change. By the 2040s, an interuniversity team of Hong Kong researchers predict, residents will sweat through an average of 48 nights per year in which temperatures remain above 28 degrees, up from 32 at present. Extreme rainfall could increase by 40 per cent, they warn.
As a port city, rising sea levels are a particular risk; should the ocean rise as the Intergovernmental Panel on Climate Change projects, commercial districts that generate over 80 per cent of the city’s fiscal revenue could ultimately be affected, according to estimates by China Water Risk.
This city recognised these risks early on. Urban emissions peaked a decade ago. The government has sharply reduced coal use and is phasing out coal in electricity generation by 2035, striving to achieve carbon neutrality by 2050.


To get there, I believe a two-pronged approach could be most impactful: collaborating to accelerate Hong Kong’s local decarbonisation, while fostering expertise and financial ecosystems to deploy new climate tech across Asia.
Tackling local emissions begins with electricity generation. Renewables are clean and cost-effective, but more power will need to be sourced from nuclear, hydrogen, and carbon capture and storage sources. Increasing connectivity with mainland China, the world’s clean technology superpower, could support this shift through importing cleaner electricity.
Buildings will be the next largest demand for transition investment dollars. Bringing together financial services, the construction industry and landlords can support retrofitting and energy efficiency upgrades. Heat pumps should be part of the solution. They can cool and heat, helping to reduce energy-intensive air conditioning.
There are opportunities to push the envelope in urban design too. The Northern Metropolis, for example, is looking to provide more than 900,000 homes for 2.5 million people. Here is a chance to show how Hong Kong can serve a clear social and economic need for better housing, while protecting the area’s wetlands, fish ponds, marshes, reed beds and mangroves.
The Northern Metropolis can be the greenest neighbourhood in Asia, a destination to witness the newest and best-in-class case study on sustainable urban development. It’s not about showing the speed at which we can pour concrete, but an unparalleled opportunity to grow a home-grown pearl.

Some policy approaches to the energy transition, such as those seen in the US and Europe, link climate investment with the re-industrialisation of domestic manufacturing. Hong Kong should prioritise services instead, capitalising on our comparative advantages to develop next-generation climate solutions.
Reducing Hong Kong’s share of global emissions will take work, but our impact will be greatest by financing decarbonisation across Asia, home to some of the world’s largest emitters. That could cost US$19 trillion by 2030, according to an HSBC analysis of data from McKinsey’s Transition Finance Model.
Heavy emitting industries face a particularly steep challenge; many of the technologies they need to clean up aren’t commercially available yet. The innovators addressing this challenge need better scientific research, more talent and more money. Hong Kong is positioned to supply all three, linking cleantech start-ups here with clients around the world. The launch of HSBC Innovation Banking in Hong Kong last year can support this mission.
Doing this will reinforce Hong Kong’s unique status as a superconnector as the regional energy transition gathers pace. A dual focus on exporting clean finance and technology while decarbonising domestically will buttress Hong Kong’s leadership and benefit the environment, at home and abroad.
David Liao is co-chief executive, Asia-Pacific, at HSBC. He is also a member of the Advisory Committee on the Northern Metropolis


Bangkok flood warnings ‘came too late’ Thais say, worst flood in 15 years

Bangkok floods trap residents as PM Anutin cuts UK trip short to tackle crisis

Thailand’s Bangkok declares flood disaster across city as thousands flee from homes

Flood-ravaged Nepal pushes for climate deal with India, China

Climate change

How Hong Kong can be a climate change superconnector

A photovoltaic system installed by the Water Supplies Department floats at the Shek Pik Reservoir to collect reference data for the future implementation of large-scale floating solar farms on reservoirs in Hong Kong, in September 2021. Photo: Martin Chan

Ma Tso Lung, part of the Northern Metropolis development, with Shenzhen in the background in December 2023. The Northern Metropolis project aims to turn 30,000 hectares of land in the New Territories into a housing and economic powerhouse. Photo: May Tse

China and Australia can team up to boost Asean’s energy transition

Activists display posters reading “stop buying Indonesia’s dirty nickel” and “Indonesia has become a sacrifice zone for the electric vehicle industry” in Jakarta on June 13. Australia’s waste management practices, mine site rehabilitation and indigenous community engagement have often been cited as global examples of sustainable mining. Photo: AFP

Hong Kong’s past heatwaves potentially contributed to 1,677 excess deaths: university study

Hong Kong needs an action plan to prevent deaths from heat stress, experts have said. Photo: Sam Tsang

Professor David Bishai, director of HKU’s school of public health, has urged government departments to come together and devise a unified action plan. Photo: May Tse

Ivan Lin of the Society for Community Organisation has said underprivileged elderly people are more vulnerable to the effects of hot weather. Photo: Elizabeth Cheung

China’s new green-transition guidelines show how the embattled industry will power on

Solar panels collect sunlight at the fishing-solar complementary photovoltaic power generation base in Lianyungang, Jiangsu province, on July 31. Photo: AFP

A solar-thermal energy storage power station is seen in China’s Gansu province last month. Photo: Xinhua

Hong Kong firms should tap Laos for logistics, green finance in ‘new era’ of ties: top envoy

Consul General Ammala Saenchonghack says Hong Kong’s experience as a financial hub can help attract and manage investments in the country. Photo: Jonathan Wong

Chief Executive John Lee during his trip to Laos. The city and the country signed 12 memorandums of understanding during the visit. Photo: Kahon Chan

The Laos-China Railway was completed in 2021. Photo: Xinhua

Consul General Ammala Saenchonghack says his country can be a “door” to access China. Photo: Jonathan Wong

Hong Kong’s green-fuel transport hub vision needs policy support, investments

Hong Kong is aiming to become a hydrogen-based green fuels supply hub for marine and air transport. Photo: Dickson Lee

Leo Yang Xiaohu, president of CIMC Enric Holdings. Photo: Dickson Lee

Opinion

Hong Kong Opinion

Asia Opinion

Business

The city can take a two-pronged approach, accelerating local decarbonisation while helping finance the climate transition across Asia


The city can take a two-pronged approach, accelerating local decarbonisation while helping finance the climate transition across Asia.


Hong Kong

Business of climate change

Green finance

Environment

Green bonds

ESG investing

Sustainability

Hong Kong environmental issues

Hong Kong economy

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


How Hong Kong can be a climate change superconnector

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}The city can take a two-pronged approach, accelerating local decarbonisation while helping finance the climate transition across Asia

The city can take a two-pronged approach, accelerating local decarbonisation while helping finance the climate transition across Asia