Report on Hong Kong Green Technology
Hong Kong Green Finance Association (HKGFA) releases report on Hong Kong Green Technology, which aims to summarize the development of the Hong Kong green technology market and attract investment for green and sustainable solutions.
Hong Kong plans to become a global hub for green technology development and provide financial support for green and low-carbon technologies through a mature capital market. Hong Kong has previously released a green fintech map, listing market participants in the green technology field.
Related Post: Hong Kong Releases Green Fintech Map
Introduction to Hong Kong Green Technology
The Hong Kong Green Finance Association summarizes the following six green technology industries based on the Green Technology Book published by the World Intellectual Property Organization and the priorities of the Hong Kong Climate Action Plan 2050:
- Energy industry: hydrogen and fuel cells, energy storage, waste to energy conversion, bioenergy, wind energy, solar energy, smart grid.
- Environmental and waste management industry: pollution monitoring, measurement, monitoring and elimination, waste organisms, solid waste treatment, recycling and reuse, nature-based solutions, carbon capture and storage.
- Building and construction industry: energy management and energy efficiency, sustainable design, building materials, building processes, construction waste, lighting, heating, cooling, ventilation, and heating equipment.
- Transportation industry: new energy vehicles, new energy infrastructure, sustainable shipping, sustainable aviation, intelligent transportation systems.
- Manufacturing and materials industries: biodegradable materials, sustainable textiles, chemical processes, new materials.
- Fintech industry: ESG data analysis, ESG information disclosure and regulatory reporting, climate risk modeling and assessment, sustainable supply chain, green financing and investment, carbon trading analysis and technology.
Hong Kong Green Technology Policy
In October 2024, the Hong Kong Monetary Authority released the Sustainable Finance Action Plan, proposing to continue consolidating Hong Kong’s position as a regional sustainable financial center. The HKMA believes that investing in sustainable projects and promoting sustainable innovation are important methods of net zero financing. In the 2024 Policy Address, the Hong Kong government proposed to expand the scale of blended financing and guide market investment in the green technology industry. Specific measures include:
- Establish an HKD 10 billion Innovation and Technology oriented Fund: Hong Kong plans to establish a parent fund with a total scale of HKD 10 billion to guide market investment in emerging and future technologies, including the new energy industry, and systematically build a technology ecosystem.
- Optimize the Innovation and Technology Venture Capital Fund: Hong Kong plans to redeploy 1.5 billion HKD and jointly establish a fund with market participants to invest in startups and optimize the startup ecosystem in Hong Kong.
- Utilize the role of Hong Kong Investment Corporation Limited: Hong Kong Investment Corporation will serve as patient capital to invest in innovative technology enterprises and drive market investment.
Suggestions for Hong Kong Green Technology Development
To promote the development of Hong Kong’s green technology industry, the Hong Kong Green Finance Association proposes the following suggestions:
- Provide financial support for green technologies: The government can help green projects through mixed financing, preferential financing, and other methods to accelerate their commercialization. The government can also use tools such as climate resilience debt clauses and debt for climate swaps to provide sufficient funding space for climate action.
- Provide financing subsidies for small and medium-sized enterprises and pay sustainable costs: Small and medium-sized enterprises are an important part of Hong Kong’s enterprises. The government can provide subsidies for small and medium-sized enterprises to apply for green technologies and sustainable financial instruments through financing plans, reduce the burden of sustainable development, and promote the application of green technologies in the market.
- Prioritize green technologies and low-carbon products in government procurement: Government procurement can serve as an incentive measure to promote the development of green technologies. Prioritizing green technologies in procurement can reduce carbon emissions and increase market demand for low-carbon products.
- Establish a green technology data platform and ecosystem: The government can provide data support for green technology enterprises to obtain financing and investment from financial institutions. Green ecosystems can support the matching of funds and technologies between different industries, improving market information transparency.
- Establish a cross departmental working group to develop a green technology development plan for Hong Kong: The government can establish a working group based on multiple departments involved in green technology, such as technology, environment, finance, transportation, etc., to develop a green technology development work plan and establish key performance indicators and application mechanisms.
Reference:
