Secretary for Environment and Ecology Tse Chin-wan speaks at the Industry Green Development Conference 2023 in Guangzhou on June 1, 2023. (PHOTO / HKSAR GOVERNMENT)

HONG KONG – Hong Kong will accelerate its development into a global green technology and finance center, focusing on industries with a competitive edge and strategic significance for the city, Secretary for Environment and Ecology Tse Chin-wan said Wednesday.

Answering a query at the Legislative Council, Tse said the Hong Kong Special Administrative Region government is committed to vigorously developing green finance, turning Hong Kong into an innovation and technology hub, and increasing the weight of I&T industries in the economy.

Tse said new energy technology was one of the strategic emerging tech industries that the HKSAR was focusing on since it helps combat climate change and takes forward strategies to achieve the targets of carbon neutrality

“To actively seize the opportunities brought by our country's dual carbon strategies, the government will accelerate the development of Hong Kong into an international center for green technology and finance and strives to build a green technology ecosystem,” Tse said.

He said the government will promote green finance application and innovation to help green projects obtain capital more conveniently and flexibly through financial innovations, apart from traditional financing channels.

“Our work will include promoting green certification and alignment with international standards, training for talents, and enhancing the exchange and cooperation with cities in the (Greater Bay Area) and international markets,” Tse said.

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He said new energy technology was one of the strategic emerging tech industries that the HKSAR was focusing on since it helps combat climate change and takes forward strategies to achieve the targets of carbon neutrality.

“The government is actively exploring the application of new energy in transport and electricity generation to introduce them for testing in Hong Kong when the technologies become relatively mature,” Tse said.

He said the government has injected a total of HK$1.1 billion ($140.5 million) into New Energy Transport (NET) Fund to subsidize the transport trade and non-profits to conduct trials and promote the wider use of innovative green transport technologies.

A total of 300 trial projects have been approved under the NET Fund, including various types of electric commercial vehicles and vessels, with a total subsidy of about HK$254 million, Tse said.

To promote more green projects and corporates using the platform in Hong Kong for raising funds, the Green and Sustainable Finance Grant Scheme provides subsidy for eligible bond issuers and loan borrowers to cover their expenses on bond issuance and external review services.

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As of the end of May 2023, close to HK$180 million have been granted to about 250 green and sustainable debt instruments issued in Hong Kong, involving a total underlying debt issuance of over HK$600 billion (about $80 billion).

To build a green technology ecosystem, the Innovation and Technology Fund administered by the Innovation and Technology Commission have funded about 130 research and development projects related to green technology so far, with a total funding of about HK$400 million.

The Hong Kong Science and Technology Parks Corporation and Cyberport have also set up the Corporate Venture Fund and the Cyberport Macro Fund respectively to co-invest with angel investors or venture capital funds in start-ups in the Hong Kong Science Park and Cyberport on a matching basis.

Tse said another HK$400 million has also been injected to the Environment and Ecology Bureau’s Green Tech Fund, which provides better and more focused funding for R&D projects that can help Hong Kong decarbonize and enhance environmental protection.

The GTF has approved 22 projects from local universities, designated research institutes and private enterprises, involving a total funding of about HK$100 million.These projects include technologies for the cells, storage and generation of hydrogen fuel; manufacturing and application of biochar-enhanced construction materials; and air cleaning system for reducing roadside air pollution.

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Tse said that apart from supporting local I&T development, the government was also exploring growth opportunities with neighboring regions, including cities in the GBA, in building low-carbon communities, developing decarbonization technologies, promoting low-carbon products and nurturing talent.

Through the Cleaner Production Partnership Programme launched in collaboration with the Department of Industry and Information Technology of Guangdong Province, the EEB will continue to encourage and subsidize Hong Kong-owned factories in Hong Kong and Guangdong to adopt cleaner production technologies and practices, for energy saving and air pollutant and waste reduction.

Hong Kong will also explore the feasibility of developing new offshore projects and introducing new energy for electricity generation, Tse added.