## Hong Kong SAR’s Economy in the Face of Climate Change: Risks and Prospects

## Source details

**Canonical URL:** [Hong Kong SAR’s Economy in the Face of Climate Change: Risks and Prospects](https://www.imf.org/-/media/files/publications/selected-issues-papers/2025/english/sipea2025051.pdf)

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### Overview and context
- Paper: SIP/2025/051; also published separately as IMF Country Report No 25/16.
- Author: Fozan Fareed; Authorized for distribution by Thomas Helbling.
- Completed on January 13, 2025; Published May 2025.
- JEL Classification Numbers: Q50, Q54, Q58, G21.
- Keywords: Climate risks, climate adaptation, mitigation, Hong Kong.
- Authors’ E-Mail Address: ffareed@imf.org
- Three-pronged Climate Action Plan 2050 focus areas: mitigation, adaptation, and building resilience.

### Major findings and projections
- Climate risks in Hong Kong SAR are ongoing and projected to remain prevalent or intensify in the future.
- Hong Kong SAR has set specific climate targets:
  - Reduce carbon emissions by 50 percent before 2035.
  - Achieve carbon neutrality before 2050.
- Significant strides have been made in recent years toward decarbonizing the economy and building resilience, but additional sustained action is required to meet targets.
- Key areas needing further progress include:
  - Reducing emissions in hard-to-abate sectors.
  - Improving energy efficiency across industries.
  - Strengthening resilience against extreme weather events.
  - Further integrating climate into systemic risk analysis.
  - Fostering a green finance ecosystem.

### Policy recommendations and priorities
- Prioritize sustained implementation of the Climate Action Plan 2050 across mitigation, adaptation, and resilience-building pillars.
- Targeted measures to reduce emissions in hard-to-abate sectors.
- Enhance energy efficiency measures across industries to support emissions reduction targets.
- Continue strengthening infrastructure and community resilience to natural disasters and extreme weather.
- Integrate climate considerations into systemic risk analysis frameworks.
- Develop and deepen a green finance ecosystem to support climate-related investments.

_International Monetary Fund. SIP/2025/051. Prepared by Fozan Fareed; completed January 13, 2025; published May 2025._

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_Source: https://www.imf.org/-/media/files/publications/selected-issues-papers/2025/english/sipea2025051.pdf_