Hong Kong unveils action plan for green fuel bunkering
Hong Kong has mapped out an official strategy to decarbonise its domestic shipping sector in alignment with International Maritime Organization (IMO) targets.
PHOTO: Aerial view of Tsing Yi South Bridge in Hong Kong. Getty Images
This includes 20-30% GHG reductions by 2030 and 70-80% reductions by 2040 compared to 2008 levels, with a goal of achieving net-zero emissions for shipping "by or around 2050."
As part of the plan, Hong Kong has committed to cutting carbon emissions from Hong Kong-registered ships by at least 11% compared to 2019 levels by 2026. The government also wants to ensure that 55% of the 166 diesel-powered vessels in its fleet switch to using green maritime fuels by 2026.
It has recognised biodiesel, LNG and its variants like bio- and e-LNG, green methanol, green hydrogen and green ammonia under its broader definition of green maritime fuels.
The plan aims to reduce carbon emissions from the Kwai Tsing Container Terminals by 30% compared to 2021 levels and sets an ambitious goal for 7% of all Hong Kong-registered ships to adopt green maritime fuels by 2030.
To support these targets, the government has outlined five strategies and 10 actions to develop the infrastructure for green fuel supply and distribution.
Key measures include enacting the Shipping Legislation (Use of Fuels and Miscellaneous Amendments) Ordinance 2024, which will expand the legal framework to accommodate “more environmentally friendly new fuels” in Hong Kong, ensure safety standards and address environmental considerations.
Hong Kong intends to release official draft standards – or “Codes of Practice” – for LNG by the end of this year, followed by standards for green methanol, hydrogen and ammonia bunkering in 2025.
The region’s first LNG ship-to-ship bunkering pilot is expected in the first half of 2025, while designated anchorages and spaces for green fuel bunkering are expected to be decided by 2026.
To incentivise green fuel adoption, the government plans to introduce a Green Maritime Fuel Bunkering Incentive Scheme and is exploring tax exemptions for green methanol used as bunker fuel, both by 2025.
The government has also identified a land parcel near the port in Tsing Yi South for green fuel storage and plans to invite industry participation for developing the site next year.
By Konica Bhatt
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