Hong Kong SAR’s Economy in the Face of Climate Change

Hong Kong SAR is facing ongoing challenges from climate change, with projections indicating that these issues will remain prevalent or even intensify in the future. In response, Hong Kong SAR has embraced a comprehensive three-pronged climate strategy—the Climate Action Plan 2050—that focuses on mitigation, adaptation, and building resilience, and sets ambitious goals of reducing carbon emissions by 50 percent before 2035 and achieving carbon neutrality before 2050. Simultaneously, there is a concerted effort to bolster infrastructure and community resilience against natural disasters. Although significant strides have been made towards decarbonizing the economy and building resilience in the last few years, sustained action is pivotal to reach carbon neutrality, including by reducing emissions in hard-to-abate sectors and improving energy efficiency across industries. It would also be crucial to continue strengthening resilience against extreme weather events, further integrate climate into systemic risk analysis, and foster a green finance ecosystem.