Why are Hong Kong’s vital low-carbon policies missing from the budget?
- Business leaders in Hong Kong are ready to capitalise on China’s climate and dual circulation policies
- However, rather frustratingly, where policy is needed, they see little movement from the government
Hong Kong needs to capitalise on its well-placed position. It must optimise its opportunities through focused efforts and the right narratives to guide, explain and inspire. Many ingredients are in place, as evidenced by the budget, but the financial secretary can make sure his stir-fry sounds, looks and tastes good.
Dual circulation and carbon neutrality are two limbs marching the nation forward. They are closely related, as domestic production and consumption will both have to be low-carbon.
The European Union is keen to work with China on climate change and, despite US-China tensions, the highest potential for collaboration between Beijing and Washington lies in decarbonisation. Hong Kong’s financial secretary has a vested interest to ensure the city is in a position to contribute.
In other words, there will be a continuing international focus on climate change and decarbonisation for the rest of the year at least. Hong Kong can genuinely build a better story of its capabilities and potential.
But Chan remains too hesitant in finding a major role for Hong Kong in the global green transition. He acknowledged that “green development is a major global trend” in his budget but his hesitancy comes from the mumble-jumble that “the government needs to have visions and determination; the people need to build awareness […] the business sector needs to develop and adopt novel technologies, and launch products of high efficiency”.
Indeed, Hong Kong’s already highly trained workforce will benefit from having climate change and environmental sustainability added to their list of qualifications, whether they are in construction, manufacturing, real estate, logistics or hospitality. Only through experience can Hong Kong develop a highly climate-competent workforce that understands sustainability and can provide high-value services to other economies.
Hong Kong needs to find niches where it can build on existing competences – industry is one such area. Chan’s plan for re-industrialisation can learn from mainland thinking on how to use policy and incentives to drive alignment within industries, which must also include research and development.
The frustration on the ground with many sector leaders is that they see opportunities, they know they can meet the challenge, but where policy is needed, they do not see much movement.
Christine Loh, a former undersecretary for the environment, is an adjunct professor at Hong Kong University of Science and Technology