Greater China ESG developments

During Xi’s decade in power, major policy emphasis has been placed on reversing the damage done by decades of breakneck economic growth. Low-carbon growth has also become a key part of China’s efforts to boost its international prestige and lead a new “global green industrial revolution”. Doubling down on such policy priorities, Xi Jinping, in his opening speech at the 20th National Congress of the Communist Party of China, pledged to “basically eliminate” heavy air and water pollution while bringing soil contamination under control, called for the steady implementation of China’s carbon peak and neutrality targets, and vowed to support for low-carbon industries, pursue an “energy revolution” and build a new energy system while continuing to promote the “clean and efficient use of coal.” All of the aforementioned points to one single goal - bringing emissions to a peak by the end of this decade and achieving carbon neutrality by 2060.

In parallel, Hong Kong Government hosted The Chief Executive’s 2022 Policy Address today, 3 days after Xi’s opening speech. Aligning with the country’s positioning on ESG, environmental-protection are the main policy pillars in the special administrative region. To summarize, in order achieve the goal of carbon neutrality before 2050 and step up decarbonisation efforts, the Hong Kong government outlined 3 focus areas (incl. targets):

Energy conservation

• Improving overall energy performance of government buildings and infrastructure by more than 6% by 2024-25 

Green transport promotion

• Ceasing new registration of fuel-propelled and hybrid private cars in 2035 or earlier;

• Adding 7,000 parking spaces with electric vehicle chargers in government premises;

• Introducing  700 electric buses and 3,000 electric taxis by end of 2027; and

• Formulating a roadmap for the promotion of eclectic public transport and commercial vehicles; and long-term strategies for the application of hydrogen energy in road transport.

Waste reduction in the community promotion

• Achieving zero landfill by 2035;

• Expedite development of modern waste-to-energy (WtE) incinerators;

• Exploring  legislation requiring major housing estates and single-block buildings with a relatively large number of flats to collect separated recyclables and pass them to recyclers for processing;

• Building the first modern WtE incinerators near Shek Kwu Chau, and the second one in Tsang Tsui, Tuen Mun; and

• Launching a trial scheme on food waste collection this year.