Published: 22:57, October 5, 2025
Hong Kong maps out a visionary eco blueprint
By Dong Yu

Hong Kong’s 2025 Policy Address lays out an ambitious green agenda to drive economic revitalization and sustainability hand in hand, embracing cleaner energy, modern transport, waste reduction, and nature-based tourism as engines for growth. It aligns with broader strategies — from the Northern Metropolis innovation hub to expansion of the headquarters economy — ensuring Hong Kong’s prosperity ties to environmental leadership.

Hong Kong is upgrading its infrastructure to improve efficiency and cut emissions. Building retrofits (better insulation, smart systems, on-site renewables) and district cooling projects will sharply reduce energy use in older commercial buildings. These measures also create new jobs — architects, engineers and green-product makers — bolstering the economy. The plans tie into the Northern Metropolis development strategy.

To power these advances, the city is expanding its clean energy infrastructure. A landmark commitment is the construction of an electric-vehicle battery recycling facility — the city’s first large-scale plant — which will start operation in the first half of 2026. Retired EV batteries will be broken down into “black mass” for reuse in new batteries, creating a circular supply chain. This not only reduces waste but also supplies materials to the Chinese mainland and the broader region, reinforcing Hong Kong’s role in a regional green economy. Fast charging for EVs is also being accelerated — a HK$300 million ($38.5 million) incentive program will add about 3,000 fast chargers by 2028, and bus depots will open chargers to public use. Together, these steps lower barriers for drivers to switch to EVs and cut transport emissions.

At the same time, the city is fostering innovation. The government continues funding emerging clean technologies through grants and partnerships. This includes the new HK$3 billion Frontier Technology Research Support Scheme, and an upcoming HK$1 billion artificial intelligence research institute, illustrating how the green and tech agendas reinforce each other.

Transportation is a major emission source, so Hong Kong is pushing aggressively to electrify vehicles. In addition to expanding charging networks, the government will support market development of battery-swapping technologies and automated swapping stations. In fact, taxi and bus operators are already deploying EV fleets under government programs.

Hong Kong’s leadership is tying sustainable development to economic revitalization, headquarters attraction, and regional integration. The overall tone is one of confidence: By blending ambition with realism, the city aims to become a model “green finance and innovation hub” for Asia

Hong Kong is advancing toward a “zero landfill” future, with the Waste Blueprint 2035 targeting adequate waste-to-resource capacity by the mid-2030s; I-Park1 will progressively begin operation by end-2025, with I-Park2 funding sought next year, and a paper-pulping facility to begin trial operation by the end of 2025.

Hydrogen energy is a centerpiece of Hong Kong’s decarbonization strategy. The city has already launched 28 hydrogen trial projects — from zero-emission buses and street scrubbers to a public hydrogen refueling station in the New Territories — under the Hydrogen Strategy announced last year. These pilots, in collaboration with Guangdong province, aim to make fuel-cell vehicles practical and prepare the way for industrial use. In 2025, authorities will set safety and quality standards for hydrogen fuel and extend refilling stations to Hong Kong Island and Kowloon. A notable goal is developing a Guangdong-Hong Kong-Macao Greater Bay Area Hydrogen Corridor — a cross-border network of production plants and pipelines linking Hong Kong with mainland facilities, which will enable Hong Kong to tap cheaper large-scale hydrogen from neighboring cities, while providing outlets for local innovations.

Alongside hydrogen, Hong Kong is pursuing sustainable aviation fuel (SAF) for air transport and a specified target SAF consumption ratio by 2030 for flights departing Hong Kong. This means large volumes of biofuels or synthetic kerosene will replace traditional jet fuel. To support this, the city will partner with mainland SAF producers to build local SAF plants and a blending terminal, creating a Greater Bay Area hub for green aviation fuel. This positions Hong Kong air travel on a low-carbon path.

HK as a green finance hub

Hong Kong’s financial sector is a core pillar of this green strategy. The city has already cemented itself as Asia’s leading sustainable finance hub. To guide markets, Hong Kong has developed a local green taxonomy, released in 2024, aligned with the mainland’s, the European Union’s, and global standards. This common framework helps investors identify bona fide “green” projects and avoid “greenwashing”. Regulators are also building carbon-market infrastructure. For instance, the Hong Kong Exchanges and Clearing Ltd’s “Core Climate” carbon exchange is set to trial cross-boundary trading with Guangdong province pilot markets. Such links allow companies in Hong Kong and the Greater Bay Area to trade carbon credits seamlessly, broadening the market and depth of financing for clean projects. Together, these steps strengthen the city’s specialty as the gateway for green capital — attracting international issuers and funding while circulating private investment into local green jobs.

Hong Kong’s green push extends well beyond its borders, embracing the Greater Bay Area. The strategy explicitly builds on regional synergies. A centerpiece is the Beautiful Bay Area initiative — Hong Kong will co-lead efforts with Guangdong to clean up and protect coastal waters and ecosystems. It has pledged coordinated action on nearshore pollution control, shoreline restoration and ecosystem monitoring.

Energy and industrial cooperation also figure prominently. The planned Greater Bay Area Hydrogen Corridor is a joint effort: Guangdong’s large hydrogen-production facilities will link to Hong Kong’s end users, creating economies of scale. In aviation and shipping, Hong Kong aims to be the regional green-fuel trading hub, exporting SAF and promoting clean marine fuels throughout the bay. Financially, Hong Kong is deepening carbon and bond market integration. The upcoming Hong Kong-Shenzhen Stock Connect extensions and carbon-trading pilot programs will let businesses tap the combined Greater Bay Area capital pool for climate projects. Even in waste, the new EV battery recycling plant in Hong Kong will feed raw materials into mainland factories, and vice versa. In short, the policy envisions Hong Kong’s climate efforts as fully embedded in the Greater Bay Area ecosystem.

Hong Kong’s status as an international port and tourist destination is being leveraged for sustainability. Maritime services will go green: A new government Bunkering Incentive Scheme and budgetary tax breaks encourage early adoption of zero-carbon fuels like green methanol and liquefied natural gas. The 2025-26 Budget explicitly offers tax incentives for ships bunkering green methanol, to cut costs and make Hong Kong a leader in sustainable shipping. Marine Department action plans will build green fuel terminals and safety protocols. These moves will attract eco-conscious shipping lines and spur local investment (fuel logistics, vessel refits) — reinforcing Hong Kong’s competitiveness as a maritime hub while reducing pollutants in its harbor.

On land, nature and tourism are being integrated under an “Ecology + Tourism” banner. The Four Peaks project will upgrade trails and facilities on Hong Kong’s mountains, adding things like treetop adventure parks, open-air cultural museums, and campsite renewals, all built to blend into the landscape. Meanwhile, rural attractions are being linked into immersive eco-tours: A network of cycling and hiking routes will connect traditional villages, ancestral halls, farms and cultural sites, providing rural communities with new income while encouraging city dwellers to appreciate conservation. The 2025 Policy Address sets out clear timelines. Hong Kong’s leadership is tying sustainable development to economic revitalization, headquarters attraction, and regional integration. The overall tone is one of confidence: By blending ambition with realism, the city aims to become a model “green finance and innovation hub” for Asia.

 

The author is director of research at the Institute of Innovative and High-Quality Development (Hong Kong).

The views do not necessarily reflect those of China Daily.