Fragmented rules threaten Hong Kong’s decarbonisation drive

Experts say Hong Kong must streamline permitting to stay competitive.

Hong Kong is pushing maritime decarbonisation through electrification and green fuel reforms, but fragmented regulations are slowing progress as Chinese ports advance faster. Stephenson Harwood advises NatPower Marine’s joint venture with Wah Kwong Maritime Transport to build electric shore power networks across Asia — infrastructure increasingly vital to Hong Kong’s position in the regional maritime ecosystem.

Danny Kan, Partner at Stephenson Harwood in Hong Kong, said the city has made visible strides in recent years. Terminal operators are also adopting emission-cutting technologies, including “using electric or hybrid Powered port equipment and introducing renewable energy within the port.”

Kan highlighted the government’s action plan on green maritime fuel bunkering, issued late last year, as a foundational policy shift. The plan outlines five green-centric strategies “from encouraging the use of alternative fuels to developing a green maritime fuel bunkering ecosystem,” he said.

Hong Kong also intends to subsidise vessel transformations and create “a green, friendly arrangement for usage of port facilities.” Regional collaboration is another priority, with Hong Kong aiming to work with the mainland and other Asian economies “and to nurture talents in this space.”

Yet, despite this direction, scaling shore power across Asia remains fraught with technical, financial, and regulatory barriers. Cathal Leigh Doyle, Partner at Stephenson Harwood in London, said the first major hurdle is the absence of unified standards. “Ports, vessels, and national regulators often have different requirements, making interoperability and cross border operations difficult,” he said.

High capital costs for both ports and ship owners add to the challenge. According to Doyle, “a high upfront capital cost for both ports and ship owners… ultimately can be a barrier, especially where government incentives are clear. Business cases are lacking.”

While more companies are now offering turnkey financing and installation packages, he stressed that successful deployment still hinges on stakeholder coordination. “Successful projects require close collaboration and clear contractual frameworks to allocate risk and ensure bankable, reliable and future proof solutions.”

However, the most pressing bottleneck remains permitting. “The process for obtaining approvals can be slow and fragmented,” Doyle said, calling for “a streamlined and predictable approval process” to accelerate adoption.