As global momentum builds towards net-zero emissions, Hong Kong is positioning itself as a leader in green technology and sustainable development.
With its Climate Action Plan 2050, the city has set ambitious decarbonisation targets. But the real opportunity lies in its thriving ecosystem of startups, government-backed initiatives, and cross-border green finance opportunities that could resonate with European investors and innovators.
From policy and infrastructure to impressive startups challenging the future of green innovation, Hong Kong could be the jumping-off point for successful market entry into Asia.
Hong Kong’s climate strategy – from policy to action
In 2021, Hong Kong unveiled its Climate Action Plan 2050, committing to carbon neutrality by mid-century with an interim goal of halving emissions by 2035. The strategy hinges on four key pillars:
- Net-zero electricity generation: transitioning from coal to natural gas and renewables, including offshore wind and solar.
- Green buildings & energy efficiency: tightening energy codes and retrofitting older buildings with smart tech.
- Sustainable transport: expanding EV infrastructure and exploring hydrogen fuel cell buses.
- Waste reduction & circular economy: boosting recycling rates and investing in waste-to-energy plants.
For European cleantech firms, Hong Kong’s push for smart city solutions and green infrastructure presents collaboration opportunities, particularly in energy storage, smart grids, and sustainable urban planning.
Government support: funding & incubation for green technologies
To accelerate innovation, the Hong Kong government has rolled out several funding and support schemes.
The Green Tech Fund is a governmental initiative that supports R&D projects that aim to support Hong Kong’s decarbonization efforts. That can include renewables, energy efficiency, waste upcycling, and more. They offer support from HK$2.5-30M (roughly 300,000-3M EUR).
While funding is available to companies that are incorporated in Hong Kong, they are also open to collaboration with international research institutions.
Meanwhile, Hong Kong is planning on a major EV infrastructure rollout, with 150,000 charging stations expected to be installed by the end of 2025. Subsidies for fleet electrification will also be offered as an incentive to make the switch.
Startups can look for support at the HKSTP (Hong Kong Science and Technology Parks) GreenTech Hub. There they can find access to incubation, grants, support, and mentorship from any of the 16+ partners that range in industries from financial and business institutions to universities. There, the focus is to support startups in accelerating the commercialisation of R&D outcomes.
Since 2019, Hong Kong has issued over $10 billion USD in green bonds to fund sustainable infrastructure projects. In 2024, the volume of green and sustainable bonds arranged in Hong Kong amounted to around $43 billion USD, ranking first in the Asian market for seven consecutive years since 2018.
Hong Kong’s rising green startups – a playground for innovation
The city’s supportive environment makes it an ideal testbed for cleantech startups, and has inevitably produced several startups developing innovative solutions. InvestHK, the investment promotion agency of the Government of the Hong Kong Special Administrative Region, has been actively assisting startups to explore the growth path in the city by connecting them with the startup community, such as government bodies, incubators and investors. Some of these startups include:
- i2Cool – Passive radiative cooling paint that slashes building energy use without electricity. The company has expanded to the international and Middle Eastern markets.
- Clearbot – AI-powered robotic boats cleaning harbors autonomously. They can clean either thick marine vegetation growth, or even dense litter, collecting up to 500kg of waste in one go. They are already deployed in India and Indonesia.
- AMPD Energy – emission-free electric generators for construction sites, replacing commonly used diesel generators. The company has already expanded to Singapore, Australia, and the UK.
- RHT Technologies – a deeptech startup that has developed and patented Nano-Confined Catalytic Oxidation (NCCO) technology to improve air purification processes. The company has expanded its research and business collaboration to Germany and Canada.
With a combination of a supportive greentech development environment and proximity to mainland China’s manufacturing ecosystem, the startups are able to scale rapidly in the commercialisation of their research.
Gateway to Asia & the road ahead
Hong Kong is proving to be a major contender in the greentech space, offering an environment for startups to thrive. For startups, companies, and investors looking towards the Asian market, Hong Kong could be an appealing gateway, particularly for those in the sustainability space.
While challenges remain, such as land constraints for large-scale renewables, Hong Kong’s policy push, startup dynamism, and financial infrastructure make it a compelling player in the global green tech race. For European investors and entrepreneurs, the city offers a strategic partner for sustainable innovation.
As these solutions scale and attract more investment, Hong Kong is well-positioned to become a regional leader in green innovation, proving that sustainable development and economic growth can go hand in hand.
Your partner in harnessing the opportunities in Hong Kong, including two-way investment, is InvestHK. They work to support overseas partners in establishing and expanding their reach and collaboration in Hong Kong. In 2024, InvestHK set a record of completing 539 overseas and Mainland projects, up by 41% compared to the previous year. Invest Hong Kong would be sponsoring “Founders Fuse Lounge” at the London Tech Week, to promote Hong Kong’s latest tech and startup landscape. Come and find out more about the offerings of Hong Kong
Services from InvestHK are free of charge and confidential. They can assist in a range of support, from navigating the best approach to market entry to identifying growth opportunities. Meanwhile StartMeUp.hk can assist in connecting with business angels and VCs.
To learn more about the opportunities to develop a presence in Hong Kong, check out investhk.gov.hk and startmeup.hk.
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