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Today: Jun 14, 2024

Hong Kong fuels green tech might with a thriving start-up culture.

2 mins read

TLDR:

The FinTech Association of Hong Kong believes that Hong Kong has the potential to become a leading green tech and green finance hub by focusing on supporting start-ups and leveraging China’s expertise in key technologies. The association suggests that public-private collaboration is necessary to create funding structures for green start-ups, attract and nurture talent, and foster a risk-taking mindset. It also emphasizes the importance of identifying sub-sectors where Hong Kong has advantages, such as electric vehicles, renewable energy, and hydrogen. The government has already taken steps to support the development of the green tech sector, including setting up a green technology and finance development committee and providing financial assistance programs. However, challenges remain, such as the difficulty of financing new technology projects and attracting and retaining talent.

Key Points:

  • The FinTech Association of Hong Kong believes that Hong Kong has the potential to become a leading green tech and green finance hub.
  • Public-private collaboration is necessary to create funding structures for green start-ups, attract and nurture talent, and foster a risk-taking mindset.
  • Identifying sub-sectors where Hong Kong has advantages, such as electric vehicles, renewable energy, and hydrogen, is crucial for success.
  • The government has set up a green technology and finance development committee and provides financial assistance programs to support the green tech sector.
  • Challenges include the difficulty of financing new technology projects and attracting and retaining talent.

The FinTech Association of Hong Kong believes that Hong Kong has the potential to become a leading green tech and green finance hub if efforts are concentrated on supporting start-ups and leveraging China’s expertise in crucial technologies. Sandeep Sethi, co-chair of the association’s green tech and ESG committee, suggests that public-private collaboration is necessary to create funding structures to back green start-ups, attract and nurture a talent pool, and foster a risk-taking mindset. Sethi emphasizes the importance of identifying sub-sectors where Hong Kong has certain advantages, such as electric vehicles, renewable energy, and hydrogen. These sectors can be initial targets for collaborations with China. The Hong Kong government has already expressed its ambition to become an international centre for both green tech and green finance. It has set up a green technology and finance development committee and will be hosting the Hong Kong GreenTech Week next month. In terms of funding, the government provides assistance through various research and development funding schemes and a Green Tech Fund. However, there are challenges to overcome. Chris Barford, a director of the FinTech Association of Hong Kong, notes that some green tech start-ups have struggled to raise additional financing for expansion after receiving seed funding. The government should consider expanding its financial assistance programs to encourage participation from family offices and institutional investors. Another challenge is growing the talent pool. According to a survey, recruiting green and sustainable finance professionals is more difficult compared to other job functions. Talent retention and acquisition are key issues in the industry. Fostering a risk-taking mindset is also a challenge that requires a change in education systems and mindset over time. Despite the challenges, Hong Kong has taken steps towards becoming a green tech hub and with further support and collaboration, it can achieve its goal of becoming a leading green tech and green finance centre.