Government extends Green and Sustainable Finance Grant Scheme to 2027

It has so far provided subsidies worth $134m under the scheme.

On the sustainability front, the government proposed to extend the Green and Sustainable Finance Grant Scheme to 2027 and to expand the scope of its subsidies to help finance enterprises’ decarbonisation journey.

Under this scheme, the government has provided subsidies worth $134m (US$100m) for over 340 green and sustainable debt instruments.

In addition, the government will launch a Green & Sustainable Fintech Proof‑of‑Concept Subsidy Scheme in 1H2024 to provide funding for new green fintech initiatives.

For the shipping sector, the government will provide $65m in funding to incentivise Hong Kong-registered ships with high decarbonisation ratings under international standards.

The government also looks into green-methanol bunkering for local and ocean-going vessels, with an action plan to be published this year.

For the aviation sector, the government is developing the Hong Kong International Airport into a green airport by promoting the use of sustainable aviation fuels.

The government will also launch a pilot scheme to adapt and explore renewable energy for buildings and facilities.

To encourage the adoption of electric vehicles (EVs), Hong Kong will extend the First Registration Tax (FRT) concessions for another 2 years with 40% reductions amidst lower EV prices.

The government will adjust the maximum FRT concession for electric private cars (e-PCs) under the “One-for-One Replacement” Scheme to $172,500 and lower the ceiling for general e-PCs to $58,500.

Additionally, e‑PCs valued at over $500,000 before tax will not be entitled to concessions. 

Meanwhile, FRT for other types of EVs, such as electric motorcycles, will continue to be waived for two years.

For the agricultural sector, Hong Kong will launch an 11-hectare modernised Techno-Agriculture Park, a modern urban farming project in Ma On Shan, and four new fish culture zones to operate in phases starting this year.