Hong Kong’s 2024 Budget to go Towards Green Maritime Hub

Hong Kong's Finance Secretary, Paul Chan Mo-po, is set to unveil a groundbreaking plan in Wednesday's budget speech, to tap into the trillion-dollar clean energy market in the United States.

According to a report made by South China Morning Post, the plan involves establishing a regional green fuel bunkering centre, providing financial incentives and infrastructure to vessel owners and the maritime industry to encourage environmental sustainability.

The initiative aims to enhance Hong Kong's position as an international logistics hub by offering more environmentally friendly alternatives to ships and planes. The source emphasized that Hong Kong has immense potential to transform itself into a greener economy while bolstering its logistics hub status.

In addition to the green fuel bunkering centre, Financial Secretary Paul Chan Mo-po is expected to announce other proposals to accelerate green finance developments.

One such proposal involves hosting an international climate financing summit in collaboration with Dubai's monetary authority in the coming autumn. This summit will facilitate the exchange of information, talent, and investment to support and finance businesses in the green technology field.

To combat carbon emissions from ships, Hong Kong's authorities plan to subsidize shipowners who retrofit their vessels to become more energy efficient and achieve higher carbon reduction ratings. The International Maritime Organization (IMO) rates ships based on energy efficiency, with stricter regulations expected in the future.

By incentivizing vessel owners to reduce carbon emissions, Hong Kong aims to contribute to the IMO's goal of cutting global shipping emissions by half by 2050.

Furthermore, Hong Kong will explore the possibility of supplying ocean-going vessels with greener fuels like methanol. The demand for methanol is expected to double by 2050 due to stricter fuel emission standards imposed by the IMO and European countries. The city intends to leverage its infrastructure and become a prominent bunkering centre for greener fuels.