Hong Kong budget ‘to offer incentives to turn city into green maritime hub’

With fourth deficit in five years being estimated to be over HK$100 billion, Chan expected to deliver measures to boost income, cut expenditures and develop new industries

Government also plans to hold fireworks and drone shows at Victoria Harbour every month, with different theme each time, according to source

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To encourage vessels registered in Hong Kong to reduce carbon emissions, authorities will subsidise shipowners who hope to attain a higher carbon reduction rating from the International Maritime Organisation. Photo: Jelly Tse

Published: 8:30am, 27 Feb 2024Updated: 12:06pm, 28 Feb 2024

Hong Kong’s finance chief will tap into the US trillion-dollar clean energy market in Wednesday’s budget by setting up a regional green fuel bunkering centre, with financial incentives and infrastructure being offered to vessel owners and the maritime industry to make them more environmentally friendly, the Post has learned.

A source familiar with the policies on Monday said the plan was designed to boost the city’s status as an international logistics hub and that Financial Secretary Paul Chan Mo-po would unveil other proposals to accelerate green finance developments in his budget speech, including the hosting of an international climate financing summit with Dubai’s monetary authority in the autumn.

“Hong Kong has a lot of potential to maximise its economic opportunities by transforming itself into an even greener economy, while the measures can also enhance its status as an international logistics hub to offer more alternatives to vessels and planes,” the source said.

A source has said the ability to supply ocean-going vessels with greener fuel such as methanol would be considered in a study commissioned by the government on green bunkering facilities. Photo: Winson Wong

With the fourth deficit in five years being estimated to be more than HK$100 billion (US$12.8 billion), Chan is expected to deliver measures to boost government incomes, cut expenditures and develop new industries, exercising one of his most difficult balancing acts so far.

To encourage vessels registered in Hong Kong to reduce carbon emissions, the city’s authorities will subsidise shipowners who hope to attain a higher carbon reduction rating from the International Maritime Organisation (IMO) through retrofitting their ships to become more energy efficient.

Ships are at present given a rating from A to E, recorded in the vessel’s ship energy efficiency management plan. Ships rated D or E for three years in a row would be required to submit an action plan for improvements to achieve a C or higher.

The IMO has said shipping is responsible for carrying 90 per cent of the world’s trade and accounts for 3 per cent of man-made carbon dioxide emissions.