Policy Comments & Advocacy

We, the undersigned environmental organisations come together with a shared commitment to address the urgent challenge of climate change and its impact on Hong Kong's environment and people. Climate change and biodiversity loss are two sides of the same coin. To protect the planet and humanity, Hong Kong has a critical role to play in the global effort on mitigating climate change and restoring nature.

We urge you to consider the following bold and comprehensive recommendations across five key areas to drive further sustainable development in Hong Kong:

1. Establish a climate governance framework to drive effective climate action

2. Promote a whole-of-society transition to a low-carbon lifestyle within a circular economy framework

3. Strengthen Hong Kong’s role as a sustainable finance hub

4. Incorporate nature-based solutions for climate mitigation and adaptation

5. Develop pathways for Hong Kong to become a green transport hub

These recommendations, outlined in detail in the attached document, aim to position Hong Kong as a leader in combating climate change and building a green and resilient future. By adopting these proactive measures, we can not only protect our city and its citizens but also inspire regional and global communities to take decisive action against the planetary challenges.

We extend our gratitude for considering these crucial recommendations in your forthcoming Policy Address. Your leadership and dedication to this vital cause will undoubtedly shape the future of Hong Kong and contribute to a carbon neutral and nature positive world.

<u>Policy Recommendations for the HKSAR Chief Executive’s 2024 Policy Address </u>

1. Establish a climate governance framework to drive effective climate action

Hong Kong’s Climate Action Plan 2050 (CAP2050) set goals of halving emissions from 2005 levels by 2035 and achieving carbon neutrality before 2050.  CAP2050 listed actions which would help move toward these targets but did not identify how much of the reduction would come from each action. Furthermore, it does not have a mechanism for annual reporting of progress towards meeting these objectives. Therefore, we recommend the government to strengthen its climate governance by:

a. Enhancing the power and resources for the Steering Committee on Climate Change and Carbon Neutrality clarifying departmental responsibilities, establishing regular public reporting, and guiding Hong Kong’s participation in international climate initiatives.

b. Establishing a Technical Climate Change Council to commission and publish research on climate impacts and necessary adaptation measures, Hong Kong’s contributions to the Paris Agreement, and additional carbon reduction actions.

c. Implementing incentive mechanisms and regulatory requirements for businesses to reduce energy consumption and decarbonise, with a focus on data transparency.

d. Implementing information disclosure systems with public education which incentivise a whole-of-society transition to lower-carbon lifestyles.

e. Establishing clear reduction targets for different sectors.

2. Promote a whole-of-society transition to a low-carbon lifestyle within a circular economy framework

In 2022, waste accounted for approximately 8% of Hong Kong’s total carbon emissions. This 8% will grow if emissions from waste remain at their current level while action is taken to decarbonise electricity and transport.

a. Implementing Producer Responsibility System (PRS) schemes by 2025 for plastic beverage containers, cartons, vehicle tyres, and electric vehicle batteries.

b. Piloting Municipal Solid Waste Charging in government buildings by the end of 2024 and set up a time frame for implement the MSW charging legislation.

c. Expanding the Green@Community network with more alternative incentives, and offer rental system for reusable containers encourage reducing at source.

d. Amend the Waste Disposal Ordinance to require property management companies and owners’ organisations of major buildings to collect and separate recyclables and pass them to recyclers for proper processing.

3. Strengthen Hong Kong’s role as a sustainable finance hub

As a global financial centre, the city has a unique role to play in supporting investments between China and the world. To enhance Hong Kong's position as a leading sustainable finance center, it is critical to implement clear and comprehensive standards. Recommendations include:

a. Providing sector-specific guidance and training to ensure compliance with new sustainability listing rules.

b. Implementing ‘Do No Significant Harm’ principles into the Hong Kong Taxonomy to ensure that investments in one environmental area do not impede others.

c. Uphold a high standard taxonomy for credible net-zero transitions, integrating climate change adaptation, circular economy, and biodiversity goals.

d. Mandating stress testing for all financial institutions to disclose financed emissions and conduct scenario analysis of their portfolios, assets, and liabilities.

e. Participate in the Just Energy Transition Partnerships (JETP), such as issuing 'JETP Bonds' explicitly designated for as a 'Transition Bond' funding JETPs.

f. To prevent greenwashing, governments and authorities must ensure that all sustainability disclosures have the same level of confidence and reliability as financial information and regularly perform random ESG report checking. Independent third-party assurance should be required.

4. Incorporate nature-based solutions for climate mitigation and adaptation

Nature-based solutions (NbS) encompass actions such as conserving, restoring, and effectively managing ecosystems to remove carbon from the atmosphere and enhance climate resilience. NbS are essential for carbon sequestration and enhancing climate resilience NbS is integral to Targets 8 and 11 of the Kunming-Montreal Global Biodiversity Framework (KMGBF), and Hong Kong is obligated to align its upcoming city-level Biodiversity Strategy and Action Plan (BSAP) with the KMGBF. Recommended actions include:

a. By 2030, at least 30% of areas of degraded terrestrial, inland water, coastal, and marine ecosystems are under effective restoration through NbS, with the objective of enhancing biodiversity, ecosystem function and services, and improving or maintaining ecological connectivity to improve climate resilience.

b. Establishing a NbS Centre of Expertise by the end of 2025 to identify and assess existing NbS initiatives and identify further opportunities.

c. Enhancing research on NbS to quantify their benefits, establish metrics, and develop certification systems.

d. Integrating NbS into but not limited to urban planning standards, the Climate Action Plan, Northern Metropolis Development Strategy, BSAP, Environmental Impact Assessment, and educational curricula.

e. Enhance public awareness and education on NbS through school curricula and professional development programs.

5. Develop pathways for Hong Kong to become a green transport hub

Transport is the second-largest source of greenhouse gas emissions in Hong Kong. To decarbonise this sector, the government should:

a. Review Roadmap on Popularisation of Electric Vehicles to cover all types of vehicles, including commercial vehicles like taxis, buses, minibuses, and duty vehicles.

b. Promote the use of alternative fuels for heavy-duty vehicles, maritime, and aviation sectors, expediting green fuel initiatives to build Hong Kong's status as a premier global maritime hub.

c. Significant investments in cycling infrastructure and pedestrian-friendly urban planning.

d. Implementing Electronic Road Pricing in low-density areas to reduce congestion.