HK expects $233.9b public sector investment for green energy

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With the Green & Sustainable Finance Grant Scheme, the government encourages the issuance of green and sustainable bonds and loans in Hong Kong

Hong Kong aims to reduce carbon emissions by 50% before 2035 and carbon neutrality before 2050

HK expects $233.9b public sector investment for green energy

The Hong Kong government is expecting some $233.9b (approximately US$30b) in public sector investment over the next 15 to 20 years to support the country’s sustainability measures, Chief Executive Carrie Lam said.

“Hong Kong announced its climate action plan in October last year, setting out strategies and measures to achieve our goal of reducing carbon emissions by 50% before 2035 as compared to the 2005 level and carbon neutrality before 2050. This covers electricity generation, energy-saving and green buildings, as well as green transport and waste reduction,” Lam said.

Lam delivered the opening address during the 15th Asian Financial Forum. The forum kicked off the celebrations for the 25th anniversary of the establishment of the Hong Kong Special Administrative Region.

‘Navigating the New Normal Towards a Sustainable Future’

With the year’s theme being Navigating the Next Normal towards a Sustainable Future, Lam described what people are looking forward to in a world of uncertainties marked by extreme weather, pandemic outbreaks, geopolitical tensions, and diverging fiscal and monetary policies worldwide.

“My government, in collaboration with financial regulators and the industry, is stepping up efforts to promote green and sustainable finance in Hong Kong. Since May 2019, we have issued green bonds totalling the equivalent of more than US$7b (HK$54.57b) under the Government Green Bond Programme. They cover bonds denominated in US dollars, euros and renminbi. The issuances drew welcome demand from global investors, helping to establish benchmarks for potential issuers in Hong Kong and the region. With the rolling out of the Green & Sustainable Finance Grant Scheme, we encourage the issuance of green and sustainable bonds and loans in Hong Kong. And we welcome financial and professional service providers and external reviewers to set up or expand here in Hong Kong,” Lam said.

The forum also hosts speakers such as United Nations Special Envoy on Climate Action and Finance Mark Carney and European Central Bank former president JeanClaude Trichet.

HOW MUCH DO HONG KONGERS NEED TO SAVE TO IMMIGRATE?

About 71% of Hong Kongers planning to leave the city for good say they would need to save at least HK$2.5m to be able to do so, a survey from a digital life insurer, Blue, showed.

Based on the survey, it will take 41 years for locals to achieve their immigration budget given their current average monthly savings of HK$5,000.

For the 59% planning to leave the city in five years, an average monthly savings of HK$41,000 will be needed.

Based on the survey’s findings, 90% of Hong Kongers are having trouble saving money due to high expenses, whilst 10% of them never thought of saving.

In particular, their main reasons for being unable to save were mortgage payment or rental expenses (37%), meal costs and entertainment expenses (30%), and shopping expenses (29%).

Of the married respondents with children, 57% said their children’s education fund was the most important factor affecting their savings behaviour.

The survey also revealed that “many Hongkongers did not understand the importance of savings,” with 12% of respondents expressing having no thoughts of starting a savings plan.

Out of the saving tools available, 50% prefer bank deposits; 17% would save by investing in stocks, funds, and bonds; 11% would want savings insurance; 9% prefer time deposits; 6% would store their money at home.

A total of 598 Hongkongers aged between 20 and 49 were surveyed through an online questionnaire for the study.