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.
03:45
Deadly heatwaves scorch South and Southeast Asia
Deadly heatwaves scorch South and Southeast Asia
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.
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
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 amemberof the Advisory Committee on the Northern Metropolis
Denial of responsibility! Chronicles Live is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – chronicleslive.com. The content will be deleted within 24 hours.
