Climate change is arguably the defining global challenge of this century — and it is arriving just as collective action is in crisis. The United States has vacillated between commitment and retreat. Across several major economies, climate policy has become more polarized, and “net zero” is no longer an easy campaign promise.

Temperature records, however, continue to be broken. The World Meteorological Organization reports that 2015 to 2025 were the hottest 11 years on record, with 2025 itself among the three warmest years. Coral reef systems across the Pacific are experiencing widespread bleaching, and extreme weather events — including stronger typhoons and heavier rainfall — are becoming more frequent in many regions.

How that global picture translates into local action is a more practical question. In Hong Kong, answers increasingly lie in cooperation with European partners. Over the past few years, much of the focus has been on standards, financing tools and technical exchange.

This shift is evident in the evolving relationship between Hong Kong and European institutions. It centers less on declarations and more on technical standards, research collaboration and regulatory alignment.

The recent Greenway 2026 forum — the fifth edition of the EU’s flagship sustainability event in the city — was a bellwether for how far that relationship has evolved. Themed “Driving Sustainability Through Innovation”, it brought together more than 300 figures from government, business and civil society to discuss not whether to decarbonize, but how. Panels ranged from green smart cities and future mobility to the standards shaping green finance and digital innovation.

Paul Lam Ting-kwok, acting chief executive, opened the proceedings; three secretaries delivered keynote addresses; and the event concluded with business leaders presenting a set of recommendations covering everything from whole life-cycle carbon assessments in construction to hydrogen fuels and green talent pipelines.

As global climate politics becomes less predictable, smaller constellations of cooperation matter more. Europe brings regulatory influence, capital and technology; Hong Kong brings access, liquidity and a gateway to the region. Neither can do much alone. Together, they at least have a chance of showing that cutting emissions need not come at the expense of economic relevance

Consider the basic facts. The EU is one of Hong Kong’s largest trading partners. EU foreign direct investment in the city totals tens of billions of euros — more than the bloc has invested in some of Asia’s midsized economies combined.

European companies now form the largest foreign business community in Hong Kong, and their presence continues to grow. These are not firms flying in for ribbon-cuttings. They run waste management facilities, design low-carbon buildings, supply signaling for rail lines, manufacture electrical equipment, structure green loans, and advise on sustainability strategy. Across sector after sector, European business has become woven into the city’s operational fabric.

That matters because Hong Kong’s decarbonization challenge is structurally similar to Europe’s. Buildings account for roughly 60 percent of the city’s carbon emissions, overwhelmingly from electricity used for air conditioning and lighting. Commentators estimate that air conditioning has a global carbon footprint comparable to, or greater than, that of aviation — an uncomfortable statistic for a subtropical service economy that spends much of the year indoors.

Companies such as Schneider Electric and Siemens have been involved in developing energy management technology in Hong Kong for years, long before the current policy push. Much of that work is technical and often invisible — sensors embedded in systems, software that adjusts performance in real time, and incremental efficiency gains that accumulate over time. As the city moves toward whole life-cycle carbon assessments, that experience becomes practical rather than theoretical. Standards may be drafted locally, but their success will rest on engineers who can apply them on site.

The Northern Metropolis will be an early test of that approach at scale. It offers a rare opportunity to embed low-carbon design, smart energy systems and integrated infrastructure from the outset, rather than retrofitting them later. For European firms already active in these areas — and for their local partners — it is not just another development but a proving ground for turning policy ambition into operational reality.

Something similar is happening in transport. Aviation and shipping sit at the heart of Hong Kong’s economy and are among the most difficult sectors to decarbonize. Europe has opted to push hard on regulation — mandating sustainable aviation fuel, tightening shipping emissions standards, and steadily phasing out support for fossil fuels. That approach is already reshaping behavior well beyond Europe. Airlines, fuel producers and shipping lines are adjusting because they have to.

Airbus has expanded its sustainable aviation fuel presence in Hong Kong, a clear signal that it expects demand to build first in this part of the world. European shipping groups are likewise pressing regional ports to adopt shore power and cleaner fuels. These discussions are already shaping investment decisions in the Greater Bay Area — which logistics hubs are upgraded, where electric fleets make sense, and what power infrastructure is installed. Rules may be set in Europe, but the commercial impact is unfolding here.

Elior Group offers a practical example. The French aeronautical services company has partnered with the Airport Authority and the Hong Kong International Aviation Academy to launch an Aircraft Engineering Training Centre and courses in aircraft dismantling and parts processing. The long-term plan goes beyond training: Elior and its local partners aim to build an aircraft dismantling and parts-trading hub at the airport and in the Northern Metropolis, with fuselage recycling and the reuse of high-value components — a concrete step toward a circular economy in aviation. That industrial chain will require suitable land, smart tax treatment, and clear policy support from the government to operate at scale.

The financial link is equally telling. Since 2019, Hong Kong’s Government Sustainable Bond Programme has channeled funding into projects such as waste-to-energy facilities and flood mitigation. European banks are regular participants in these deals and tend to bring stricter disclosure expectations, reflecting rules now embedded in EU law. That has had a quiet but noticeable effect on how green projects are reported and evaluated in Hong Kong.

There is also a broader context. As global climate politics becomes less predictable, smaller constellations of cooperation matter more. Europe brings regulatory influence, capital and technology; Hong Kong brings access, liquidity and a gateway to the region. Neither can do much alone. Together, they at least have a chance of showing that cutting emissions need not come at the expense of economic relevance.

That does not mean the relationship is frictionless. The EU’s Carbon Border Adjustment Mechanism has unsettled exporters across Asia and is often viewed here as a form of green protectionism. European policymakers reject that characterization, arguing that it simply levels the playing field. Either way, it adds a new layer of complexity for businesses.

Hong Kong’s role may be to make that complexity manageable — by helping firms understand the rules, verify their data, and, ultimately, stay connected to European markets.

The author is an international partner and member of the Global Advisory Board, MilleniumAssociates AG.

The views do not necessarily reflect those of China Daily.