As the global decarbonization drive gains pace, Hong Kong is poised to capitalize on the massive sustainability business opportunities and lead the green-technology charge, officials and experts said at the Hong Kong GreenTech Summit 2024 on Monday. “The potential for global green development is immense, and Hong Kong will not be absent in this wave,” Financial Secretary Paul Chan Mo-po told a conference hall packed with business leaders, venture capitalists and academics. The finance chief’s words came as countries worldwide are striving to promote green and low-carbon transformation — a trend that is fundamentally changing the development model that previously emphasized growth while overlooking social costs. Clean energy is a case in point. According to the finance chief, global investments in the single sector last year were estimated at $1.7 trillion, surpassing oil-related upstream industries for the first time. In the finance chief’s budget last year, Chan put forward the vision of forging Hong Kong into a global hub for both green technology and finance to capitalize on the booming transformation. For officials, the city’s strengths in its complete funding ecosystem, research capabilities, and international connectivity are the prerequisites for a bright tomorrow of the city’s greentech ambition. From venture capital and private equity funds to listing platforms, Hong Kong has long been seen as a prime fundraising center to meet the financing needs of startups and companies at different stages. “Hong Kong also offers high-quality professional services, playing a crucial role in facilitating connections between the Chinese mainland and international standards, green project certifications, and the like,” Chan said. Meanwhile, hundreds of attendees thronged exhibition stalls of about 50 greentech startups from local, mainland and overseas at the venue, including those involving carbon capture, storage solutions and green financing. Addressing the greentech gathering, Ma Jun, chairman of the Hong Kong Green Finance Association, said Hong Kong’s local decarbonization market opportunities could reach HK$5 trillion ($639 billion) due to substantial investment needs in areas such as transportation, shipping, and buildings. “Hong Kong can further pioneer demonstration projects in green construction, low-carbon transportation and the circular economy while constructing a robust ecosystem to attract greentech enterprises from the Chinese mainland and abroad through promoting incubation and acceleration policies, concessional finance and innovative use cases,” Ma said. The greentech summit kicked off a vast array of sustainability-themed events and discussions under the Hong Kong Green Week, which began on Monday. On the heels of it will be the “Climate Business Forum: Asia-Pacific”, co-hosted by the Hong Kong Monetary Authority and the International Finance Corp, on Tuesday and Wednesday. According to officials, the six-day campaign is expected to attract about 5,000 attendees from across the globe. Chinese Academy of Engineering academician He Kebin said that it is crucial to boost international collaboration and green finance strength to catalyze innovations while helping product marketing. Approximately half of these technologies, especially in energy storage and hydrogen energy, are still in the process of maturing and reaching the commercial stage, He said. Leveraging Hong Kong’s historical position as an international financial center, its proximity with the mainland, and its edges in carbon neutrality technologies will play a unique role in coordinating global climate efforts and unlocking significant commercial opportunities, he added. Adair Turner, chairman of the Energy Transitions Commission, said China is a leader in the reduction in wind turbine costs, battery chemistry and electronic vehicles of solar photovoltaic area. He said he hopes to see Hong Kong and the Chinese mainland play a major role in the decarbonization of shipping.

The top priority for the development of Hong Kong’s green economy is for the government of the special administrative region to create more application scenarios for sustainability-themed business, particularly in the transportation and construction sectors, said Ma Jun, chairman of the Hong Kong Green Finance Association. “Creating more application scenarios for green technology overrides other elements including capital, technology, and talent,” Ma said in an interview on Monday during the Hong Kong GreenTech Summit. While market forces can naturally drive the evolution of scenarios, the process is normally slow and the result is fragmented as it may not necessarily support local green tech businesses, Ma said, adding that those who have demands might opt to purchase readily available, but potentially outdated, products for their green renovations. “In this regard, rising demands should be guided by the government to tilt towards local green tech companies to lay a foundation for the ecosystem,” Ma said. Business opportunities brought by low-carbon transformation are enormous. The financial pundit estimates that Hong Kong’s local decarbonization market opportunities could reach HK$5 trillion ($639.16 billion) under the city’s current climate ambition. Nevertheless, around half of the core carbon neutrality technologies have yet to mature and commercialize. Take the construction industry as an example. According to Ma, Hong Kong has 40,000 buildings that need to achieve zero carbon emissions by 2050. There are numerous green technologies related to buildings, such as rooftop photovoltaics, new types of building materials, and coatings that reflect ultraviolet light, among others. A key consideration for officials would be how these innovative applications can be implemented and facilitated by the local scenarios that the city creates itself. “For instance, if the government announces a plan to transform 100 government buildings into zero carbon structures at a specific stage, it immediately creates demand,” he said. “Then, these demands can be specifically used to nurture and incubate local green tech businesses.”

HONG KONG - The Hong Kong GreenTech Week and Hong Kong GreenTech Summit 2024 opened Monday at the Hong Kong Convention and Exhibition Centre in the presence of more than 200 government officials, industry experts and representatives from Hong Kong, the Chinese mainland, and multiple countries. Finance Secretary Paul Chan Mo-po delivered the opening speech. The event is supported by the HKSAR government, funded by Innovation and Technology Commission, and jointly organized by Green Development Institute (GDI), Hong Kong Science and Technology Parks Corporation (HKSTP) and the Greater Bay Area Green Finance Alliance (GBAGFA). Supporting organizations for the event include Innovation, Technology and lndustry Bureau (ITIB), Bank of East Asia, New World Group, InvestHK, Chinese Society for Environmental Sciences (CSES), Hong Kong Green Finance Association (HKGFA), Hong Kong University of Science and Technology (HKUST), United Nations Industrial Development Organization Investment & Technology Promotion Office Shanghai, Hong Kong Sprinkles Charity Foundation, Institute of Sustainability and Technology, Bluetech Clean Air Alliance, China Daily, Construction Industry Council (CIC), Chinese Financial Association of Hong Kong (CFAHK), Hong Kong Polytechnic University, World Institute of Sustainable Development Planner (WISDP), China Daily, and Dot Dot News.