How companies have looked past space-starved Hong Kong for clean energy to meet carbon reduction goals

Swire Properties and Citigroup units are among companies turning to renewable-energy credits in China to meet their decarbonisation targets

Hong Kong faces space constraints for clean-energy projects while power consumers are limited to two power suppliers in home market

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The Hong Kong government will set out more proactive strategies and measures later this year to cut carbon emissions. Photo: Roy Issa

Published: 8:30am, 6 May 2021Updated: 12:39pm, 19 May 2021

Companies operating in Hong Kong are being forced to look beyond the borders, particularly in the Greater Bay Area, to achieve their carbon reduction goals because of limited space for clean-energy projects in the city.

The problem is also compounded by limited choices in electricity suppliers with room for only two generators to cater for a city of 7.5 million people, executives said. Importing low-carbon electricity from the southern Chinese province of Guangdong would help increase the supply of clean energy or tradeable credits, they added.

“Our challenge is that we are bound to one supplier, [so] we look to the supplier to do more,” said Elizabeth Kok, a director and senior adviser at Swire Properties who oversees technical services and sustainable development. “The power suppliers have to look at the bigger picture of the Greater Bay Area given Hong Kong’s limited room for renewable energy projects.”

Hong Kong’s power market is shared by two players, with CLP Power supplying electricity exclusively to Kowloon, the New Territories and Lantau Island. Hong Kong Electric powers Hong Kong Island and Lamma Island. Together, they sold 44.1 billion kilowatt-hours of power in Hong Kong last year, compared to 44.8 billion kWh in 2019.

Swire Properties director and senior adviser Elizabeth Kok. Photo: May Tse

Those constraints have put Hong Kong’s aim to achieve carbon neutrality before 2050, unveiled last September, under intense scrutiny and doubts. The city’s climate action plan in 2017 only pledged to trim carbon emissions by 26 to 36 per cent by 2030 from 2005 levels. Chief Executive Carrie Lam Cheng Yuet-ngor said the government will set out more proactive strategies and measures later this year to cut emissions.