Hong Kong’s Journey to Net Zero: Bold Plans or Empty Promises?

The year 2035 is being hailed as a "transformative milestone" for Hong Kong as it attempts a significant energy transition. Hong Kong's Secretary for Environment and Ecology, Tse Chin-wan, delivered this ambitious vision at the recent COP29 summit in Baku, Azerbaijan, where he outlined plans to achieve net zero emissions by 2050 while increasing reliance on nuclear power.

To meet its ambitious goals, Hong Kong plans to raise the proportion of electricity it imports from nuclear sources—a staggering 70% increase by 2035—if it hopes to halve carbon emissions compared to 2005 levels. Tse made a strong commitment to eliminate coal usage entirely within a decade and enhance cross-border electricity transmission infrastructure.

However, environmental activists and critics argue that beneath these grand declarations lies a troubling absence of actionable details. Karen Ho from WWF Hong Kong highlighted the government's frequent shifts in focus from renewable energy to nuclear and hydrogen without a clear roadmap, leaving the city’s green ambitions under a cloud of skepticism.

A review released in March 2024 by Greenpeace East Asia and CarbonCare InnoLab labeled Hong Kong's governance on green finance and accountability as needing "immediate attention." Critics demand clear accountability mechanisms from the government and specific, measurable targets to combat the risk of greenwashing. This call for reform resonates even deeper when compared to other cities in the region like Singapore and Shanghai, which have set comprehensive green finance frameworks with strict accountability measures.

Hong Kong has made noticeable strides in fostering a climate-friendly finance environment, accounting for over a third of Asia's green and sustainable bond issuances. Despite this progress, there are glaring omissions; specifically, no restrictions on fossil fuel financing exist. While innovative projects such as the Government Sustainable Bond Programme and the Green Tech Fund aim to fund sustainability initiatives, they lack stringent regulations that could prevent companies from misleading the public about their true environmental impacts—a rampant issue in green finance today.

A recent initiative introduced by the Hong Kong Monetary Authority, the Hong Kong Taxonomy for Sustainable Finance, aims to create uniform standards for classifying environmentally sustainable financial products. However, these measures remain voluntary, raising questions about their effectiveness in enforcing accountability among corporations wishing to project a green image.

Despite frameworks being introduced, critics warn that voluntary guidelines alone will not hold companies back from exploiting loopholes. Environmental organizations emphasize the need for strict laws to prevent greenwashing, a sentiment echoed by Ivy Leung, executive director of CarbonCare InnoLab, who insists that companies must be held legally accountable for their sustainability claims.

As Hong Kong asserts its ambition to become a leading hub for green finance in the Asia-Pacific, many are left wondering if these bold promises can be turned into tangible actions. The city’s energy mix primarily relies on high-emission sources like natural gas and coal, which need to be curbed if Hong Kong truly wishes to move towards a sustainable future. Currently, only 1% of the city’s energy comes from renewable sources, indicating a dire need for systemic policy and infrastructure changes.

Further complicating the city’s path to net zero are conflicting infrastructure projects, notably the controversial Kau Yi Chau Artificial Islands Project. With plans to create new land through reclamation, environmentalists warn this could derail the city’s emission reduction goals by disrupting ecosystems and increasing overall emissions.

Despite Hong Kong’s outlined climate targets, skeptics emphasize that these initiatives risk remaining mere aspirations without stringent enforcement mechanisms, clearly defined interim targets, and regular updating processes. The general consensus among environmentalists is that unless the government makes substantive changes to its policies and practices, the dream of achieving net zero by 2050 may remain just that—a dream.

As the city navigates its green journey, it’s becoming increasingly clear that Hong Kong’s ambitions toward sustainability require not only lofty goals but also a robust framework to transform these aspirations into reality. Stakeholders from all sectors—government, private companies, and civil society—must converge toward a shared commitment to transparency, accountability, and tangible actions if Hong Kong hopes to emerge as a true green finance capital by mid-century.