HK expects $233.9b public sector investment for green energy

The funding will span the next 15 to 20 years.

The Hong Kong government is expecting some $233.9b (approximately US$30b) in public-sector investment over the next 15 to 20 years to support the country's sustainability measures, Chief Executive Carrie Lam said.

"Hong Kong announced its climate action plan in October last year, setting out strategies and measures to achieve our goal of reducing carbon emissions by 50% before 2035 as compared to the 2005 level and carbon neutrality before 2050. This covers electricity generation, energy-saving and green buildings, as well as green transport and waste reduction," Lam said.

Lam delivered the opening address during the 15th Asian Financial Forum. The forum kicked off the celebrations for the 25th anniversary of the establishment of the Hong Kong Special Administrative Region.

With the year's theme being Navigating the Next Normal towards a Sustainable Future, Lam described what people are looking forward to in a world of uncertainties marked by extreme weather, pandemic outbreaks, geopolitical tensions, and diverging fiscal and monetary policies worldwide.

"My government, in collaboration with financial regulators and the industry, is stepping up efforts to promote green and sustainable finance in Hong Kong. Since May 2019, we have issued green bonds totalling the equivalent of more than US$7b (HK$54.57b) under the Government Green Bond Programme. They cover bonds denominated in US dollars, euros and renminbi. The issuances drew welcome demand from global investors, helping to establish benchmarks for potential issuers in Hong Kong and the region. With the rolling out of the Green & Sustainable Finance Grant Scheme, we encourage the issuance of green and sustainable bonds and loans in Hong Kong. And we welcome financial and professional service providers and external reviewers to set up or expand here in Hong Kong," Lam said.

The forum also hosts speakers such as United Nations Special Envoy on Climate Action and  Finance Mark Carney and European Central Bank former president Jean-Claude Trichet.

(US$1 = HK$7.80 as of 11 January)