Welcome remarks by STL at Guangdong-Hong Kong-Macao Clean Energy Supply Chain Conference (English only)
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Mr CY Leung (Vice-Chairman of the National Committee of the Chinese People's Political Consultative Conference and Adviser of the Hong Kong Chamber of Shipping), Professor Ip (President of the Hong Kong University of Science and Technology, Professor Nancy Ip), Mr Hing Chao (Chairman of the Hong Kong Chamber of Shipping), distinguished guests, ladies and gentlemen,
Good morning. I am so honoured to join all of you here today at the first Guangdong-Hong Kong-Macao Clean Energy Supply Chain Conference. I particularly like the theme of the conference because it covers Guangdong, Hong Kong, Macao and clean energy, and it's about supply chains. I think the challenge and the opportunity for Hong Kong in the coming years will be surrounded with all these three themes, which is a very important topic for us to not only explore, study, but also to act.
The International Maritime Organization (IMO) has just recently approved the IMO Net-zero Framework this month, which I think a lot of the experts and professionals joining us today are aware of. This framework establishes the world's first industry-wide greenhouse gas emission limitation and pricing mechanism, with a view to further spurring the industry's efforts to achieve the shipping emission reduction targets as set out in the 2023 IMO Strategy on Reduction of GHG (greenhouse gas) Emissions from Ships. The trend of maritime decarbonisation is now simply unstoppable. Stakeholders in the maritime industry must take decisive actions, and so does the Government, in particular to gradually switch from conventional fuels to low- or even zero-carbon green fuels.
With the growing popularity of green maritime fuels, many ports have been developing green fuel bunkering. While Hong Kong might not be one of the pioneers on this front, we are definitely and rapidly closing the gap. We promulgated the Action Plan on Green Maritime Fuel Bunkering in November last year, setting out very clear objectives, including five green-centric strategies and 10 actions. Our ultimate goal is to develop Hong Kong into a green port and a green maritime fuel trading hub. Since then, there have been very successful examples of collaboration in the industry. We have three successful commercial LNG (liquefied natural gas) bunkering operations in our local waters since the first maiden trial operation of LNG bunkering on Valentine's Day this year, and I think this truly reflects the confidence of the shipping industry in Hong Kong's new role as a centre for green maritime fuel bunkering.
The trade of green maritime fuels is currently at its infancy. To break into the new market of green maritime fuel trading, we must first build up a green maritime fuel ecosystem, and gather relevant stakeholders from different parts of the green maritime fuel supply chain, as well as green shipping-related talent in Hong Kong. I think talent-building and nurturing is definitely one of the topical areas that the Government will be pursuing, and I also share the same vision with the Chamber of Shipping, which is also actively pursuing different talent-nurturing programmes in Hong Kong and on the Mainland. The Marine Department has set up a dedicated team to provide one-stop services to green shipping-related organisations interested in starting a business in Hong Kong, and "professionals in green shipping" has also recently been added into the Hong Kong Government's Talent List, so for all those interested in joining this talent list, do let us know your applications and the interested parties so that we can facilitate and assist. In addition, we are actively engaging a number of enterprises from Hong Kong, the Mainland and beyond, including various organisations such as shipping companies, green maritime fuel producers and bunkering operators, as well as gathering information from them on the demand for green maritime fuels by relevant enterprises. This will enable us to build a platform in Hong Kong to facilitate exchanges and co-operation among different enterprises in the supply chain, as well as to match their demand with green fuel producers from the Mainland. Our aim is to form an organic green maritime fuel supply chain in Hong Kong. This is not an easy task, but I think we have the determination to provide a platform and also to provide one-stop services. We are definitely hoping to work with the stakeholders in the industry, in particular the Chamber, with Hing Chao and other members of your Chamber, so as to work out quickly an organic ecosystem in Hong Kong.
I don't know whether any one of you are aware, Hong Kong actually ranked seventh as the world's leading ship fuel bunkering centre. With the staunch support from our country and together with other cities in the Guangdong-Hong Kong-Macao Greater Bay Area, as well as other cities and provinces on the Mainland, we aspire to build up a supply chain, in particular on fuel supply, transport and distribution, bunkering operation, technical and academic exchange and manpower training, in order to maintain our position and competitiveness and to better equip ourselves to support our development as an international shipping and maritime centre. Looking ahead, we will shortly promulgate the code of practice on green methanol bunkering by the middle of this year and, I hope, will invite EOIs (expressions of interest) from the market in relation to developing green maritime fuel storage facilities on a Tsing Yi site later this year. So please remember, our expressions of interest exercise will be launched later this year so as to gather the topical, updated market interest in the potential of Hong Kong in the storage of green methanol or even other new fuels.
Apart from continuously enhancing the green maritime fuel ecosystem and collaborative platform, we will vigorously promote the development of green maritime fuel trading in Hong Kong. At present, the trading volume of green marine fuels is relatively small and is primarily conducted directly between fuel producers and users. Notably, there is, so far, no green maritime fuel trading centre in the world. As the trading volume and popularity of green maritime fuels continue to grow, we are on the path to establishing a vibrant trading system in Hong Kong. Hong Kong, as an international financial centre, boasts a mature financial market, a common law-based legal system, and free flow of capital that allows efficient post-transaction settlements. I believe this unique combination positions Hong Kong better than any other cities in the country to become the go-to international platform for the trading of green maritime shipping fuels, and this will also help our country secure a leading position in this emerging trading market.
Green maritime fuel bunkering is only our first step towards green shipping. As an international maritime centre, Hong Kong must evolve into a green port to support and drive the industry's transition towards sustainability. As Mr CY Leung just mentioned, the aspiration towards green and sustainability is not just a policy agenda item of this term of Government but is also of the previous term of the HKSAR (Hong Kong Special Administrative Region) Government. In this connection, I would like to report that the Marine Department has formulated a green-friendly port arrangement to give priority to green fuel-powered vessels to use anchorages. In addition, as stated in our Action Plan, we have set the target of reducing carbon emissions from the Kwai Tsing Container Terminals by 30 per cent by 2030, as compared with 2021. We have been working closely with the port operators to follow up on their green transformation process, as well as encouraging the industry to achieve decarbonisation through port automation and the adoption of more innovative technologies.
Developing a green port is an integral part of Hong Kong in preparing for setting up green shipping corridors with other ports for the rest of the world. Hence, we have been working at full speed to actively pursue the establishment of "Partner Port" relationships with other ports to enhance collaboration in different specific areas. In addition, many green shipping corridors incorporate elements of port digitalisation. Port digialisation and digital systems were also mentioned by Professor Ip just now. Thanks to the Legislative Council, we obtained funding approval just last month and will complete the development of a digital port community system within this year. This will not only help provide the industry with more convenient, accurate, transparent and traceable real-time cargo tracking services, to enhance the competitiveness of the Hong Kong Port amidst the current uncertain trading environment, but it will also connect us with similar systems at other ports on the Mainland as well as the rest of the world for efficient and paperless data transmission.
With green as the background colour of high-quality development, the concept of environmental sustainability remains ever relevant across territories. The HKSAR Government will continue to make every effort to implement the measures set out in our Action Plan, and we will incorporate other related measures into our policy planning as and when needed. And in this process of transformation, we definitely need the expert advice and support from the stakeholders in the shipping and maritime industry. With unswerving overall policy directions as our map, firm action measures as our engine, and clear, ambitious targets as our compass, the Government will play a leading role to lead local enterprises to brave the waves and chart a new course for green shipping.
Ladies and gentlemen, last but not least, I would like to thank the Hong Kong Chamber of Shipping, with the leadership of Mr CY Leung and with the vision and staunch efforts and passion of Mr Hing Chao, for supporting the policy direction of the Government and organising this conference, in particular to gather the views and opinions from industry experts to facilitate opinion exchanges. I would also like to take this opportunity to call upon all of you to join us in developing Hong Kong into the premiere high-quality green maritime fuel bunkering centre in the region, promoting our transformation into a green-friendly port, as well as establishing an organic and symbolic green maritime fuel trading centre, so as to make unique "Hong Kong contributions" to our country's development into a maritime superpower.
Thank you all.
Ends/Wednesday, April 23, 2025
Issued at HKT 13:10
Issued at HKT 13:10
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