Financial Secretary Paul Chan said today that the Government will earmark resources to launch a five-year waste reduction and recycling plan from 2026-27.

In his Budget speech, Mr Chan said the plan will form part of the Government’s efforts to accelerate green development, and will involve expanding the recycling network by gradually transforming GREEN@COMMUNITY sites into round-the-clock self-service recycling facilities. 

Through the application of technology, valuable materials will be extracted from waste and turned into raw materials that can be used to make green products. A smart recycling network logistics system will be built to enhance cost-effectiveness and efficiency.

Tax concession

On the promotion of electric vehicle usage, Mr Chan said the first registration tax (FRT) for electric commercial vehicles, electric motorcycles and electric motor tricycles will continue to be waived in full until end-March 2028.

Given the maturity of the technology, levels of supply, the availability of different models, and lower prices, Mr Chan explained, the current FRT concession arrangement for electric private cars will not be extended beyond its expiry at the end of March this year. 

Striving for carbon neutrality

The finance chief said that, to proactively align with the national “dual carbon” targets and green and low carbon development strategies, the Government will strive to promote the development of green industries and the green transformation of enterprises. Green industries and green transformation require the support of capital, technology and talents, thereby offering enormous business opportunities to Hong Kong, he added. 

The Government is implementing Hong Kong’s Climate Action Plan 2050, striving to reduce the city’s carbon emissions by half from 2005 levels before 2035, and achieve carbon neutrality before 2050.

Among the projects approved under the $400-million Green Tech Fund, a university research team has pitched its newly developed industrial wastewater treatment technology to the Greater Bay Area and the Yangtze River Delta Region. Another approved item is a new fuel cell stack technology that is being promoted in collaboration with a hydrogen fuel cell enterprise.

On hydrogen development, Mr Chan said the Government is consulting the trade on the hydrogen certification framework with a view to establishing a certification system that connects with both the Mainland and the world.

It will host Hydrogen Week in May to foster international exchanges, and will organise Mainland tours for overseas experts to learn about the development of hydrogen applications.

Green finance

To consolidate and enhance Hong Kong’s status as an international green finance centre, the Government will take forward the implementation of the Hong Kong Sustainability Disclosure Standards. The Accounting & Financial Reporting Council is consulting the public on the proposed regulatory framework.

The Hong Kong Monetary Authority, meanwhile, will strive to develop green transition planning guidance for banks within this year.

The finance chief said the Government will support exploration, with the Mainland and international multilateral financial institutions, towards the establishment of a Hong Kong-based Green Technology Projects Accelerator.

Such an accelerator will provide incubation, acceleration, and empowerment services for green technology projects in Belt & Road regions, and serve as an innovative demonstration of Hong Kong’s green finance-related services.

The Government will also explore enabling financial institutions to obtain enterprises’ public utility usage data, with their consent, to enhance the efficiency of green financing and risk assessment.