Hong Kong is gearing up to become a leader in green technology, showcasing its strategic advantages and commitment to carbon neutrality at 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 global green technology hub.
Presented on December 11, the report 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. Focusing on five key sectors—power and new energy, green mobility, sustainable built environment, waste reduction and management, and biodiversity—Hong Kong is set to capitalize on current global investment trends.
“Hong Kong is well positioned to capitalize on this momentum,” said Mr. King Leung, the Global Head of Financial Services, FinTech & Sustainability at InvestHK. He noted how China is rapidly advancing particularly in the Power & Clean Energy sector and the Sustainable Built Environment, where it holds the most patents, already allowing several leading companies to establish international headquarters in Hong Kong.
The convergence of traditional strengths and the rapid growth of the green technology sector was palpable at the launch event, where over 100 stakeholders including industry leaders, investors, and sustainability experts gathered. They discussed recent trends and opportunities available to startups and established firms alike.
According to the findings, constructing greener buildings is pivotal since buildings account for the largest share of energy consumption in the city. The significance was emphasized by Leung, who stated, "These companies can use Hong Kong to showcase their solutions and ease their entry to other global markets including the Middle East and Southeast Asia."
Hong Kong stands out as a gateway between East and West, especially as the global climate technology scene evolves. From 2000 to 2023, China's share of investment shifted dramatically from 6 percent to 22 percent, whereas the US saw its share decrease from 76 percent to 49 percent, highlighting the shifting dynamics.
Nevertheless, recognizing and addressing challenges is equally important. The Greentech Subject Matter Expert Survey identified three major barriers to adoption: weak demand-side push (58%), ecosystem gaps (47%), and limited talent base (47%). These challenges are key to Hong Kong's Climate Action Plan 2050, which outlines solid policy directions targeted at renewable energy, energy efficiency, low carbon transport, and waste management.
With the city recognized as the largest venue for offshore green bonds, it is poised to mobilize significant funding—approximately RMB138 trillion—needed for China’s shift to carbon neutrality by 2050. The report also discussed specific strategies spanning various sectors to optimize existing resources.
Power & New Energy is one such area where actionable initiatives are underway. The city is moving toward cleaner energy sources, with 25 percent of its electricity currently supplied by nuclear power. Experts believe there is greater renewable energy potential beyond the government's forecasts of 3-4 percent. Given the global green energy investments hitting USD 1.1 trillion, along with China’s unparalleled capabilities in solar manufacturing, Hong Kong seems aptly positioned to advance smart grid and storage technology development.
Green Mobility is another focus, with 90 percent of daily passenger movements currently handled by public transport, which is responsible for around 20 percent of the city's total emissions. This sector presents massive investment opportunities, with global funding of nearly USD 8.95 billion. Hong Kong’s extensive transport network is viewed as the perfect environment for testing sustainable transport solutions, including transport electrification and autonomous system integration.
When it concerns the Sustainable Built Environment, the reality is stark. Hong Kong is home to around 42,000 buildings, of which high-rises account for 8,000. The construction industry is responsible for 30-50 percent of the city's carbon emissions. The global zero-energy building technology market, predicted to balloon from USD 72 billion to USD 403 billion by 2031, is backed by China's prominence in patents related to green buildings.
Equally pressing is the need for Waste Reduction & Management solutions, especially as Hong Kong generates more per capita waste than Tokyo, Seoul, and Taipei. Recent enhancements to local recycling initiatives and the growth of waste-to-energy technologies indicate strong demand for innovative approaches and circular economy solutions.
Lastly, biodiversity initiatives are progressively taking root. Over 40 percent of Hong Kong’s land area is designated as protected, creating fertile ground for environmental innovation. With ten companies confirming their commitment to the Taskforce on Nature-related Financial Disclosures for 2024 and 2025, there’s rising interest for technology solutions focusing on digital biodiversity monitoring.
Deloitte's research points out several key enablers for advancing green technology, led by strong government support wrapping at 47 percent, alongside access to funding (53 percent) and readiness of the ecosystem (47 percent). Hong Kong's established financial and innovation hubs serve as the linchpins to leverage these factors, melding global outreach with local expertise.
"Our analysis reveals Hong Kong’s ecosystem is set to lead the way for innovative climate solutions," remarked Mr. Mohit Grover, Deloitte China’s Hong Kong Sustainability & Climate Leader. He elaborated on the synergetic relationships forming between technical innovations, policy guidance, and market demands. This blend paints Hong Kong as not just a participant but as a bellwether for sustainable urban solutions across Asian cities.
To pinpoint what makes Hong Kong distinct, Ms. Andrea Culligan, Deloitte Global GreenSpace Tech Leader, emphasized the city's capacity to connect Western capital with Asian innovations. This unique positioning is underscored by its comprehensive grasp of regional sustainability challenges paired with its sophisticated financial framework.
Capitalizing on existing strengths, the city is bolstering its green tech ecosystem via enhanced R&D, expanded funding avenues for startups, and strengthened collaborations among academia, industry, and government. With its blend of financial might, technical prowess, and strategic locale, Hong Kong is clearly on the cusp of leading the green tech wave across Asia, transforming climate challenges not just as obstacles, but as opportunities for progressive growth and meaningful change.