CARE2022 Hong Kong Conference

73 illustrated what could go wrong in going “Big and Fast”. The mainland EV market had many companies producing many models, and most of them lose money. There would have to be painful consolidation. “F” stood for fingerprints, which was not just about data disclosure, but the data represented a pathway to re-engineer the economy. Going out 5, 10, 15 or 20 years, there would be tremendous transformation in technology, information processing, supply chains, and everything else – the mainland economy would be different and of higher quality. “G” was governance – it took time and effort to get things right. HKEX’s efforts today with developing the carbon trading market could be an example of getting small things right in the green space and becoming a part of the transformation complementing what was happening on the mainland. Financing green shipping Credit-Agricole has a major ship finance business, including a base in Hong Kong, a city with a large community of shipowners and professionals in various parts of the shipping business. Financing shipping is a major business, as shipping carried 90% of international trade. There were about 60,000 ocean-going vessels carrying 12 billion tonnes of cargo in 2021. That fleet was worth US$1,400 billion. There were US$260 billion worth of new ships on order and capital expenditure of about US$80-100 billion per year. By 2030, the annual capex needed for renewal of the fleet was expected to be US$130 billion to US$150 billion, with Hong Kong being a base for a part of that business. Shipping contributed about 3% of global GHG emissions. The International Maritime Organization (IMO), which regulates shipping in international waters, announced targets for international shipping to reduce its emissions by half by 2050, with intensity reduction targets by 2030 of 40%.25 Shipowners were busily collecting data and looking for ways to reduce emissions to meet IMO targets. It would become increasingly difficult for shipowners to raise finance if they could not improve their climate and sustainability performance. Panel 2: Risks, Data, Trading and Talent The purpose of Panel 2 was to introduce how innovation and technology (I&T) is impacting business, and that the climate transition and digitalisation was merging into new ways of assessing risks and opportunities, as well as transforming the need for new talent. 6 Financing the Climate Transition Risks, Data, Trading and Talent Panel Jim TAYLOR Senior Director, Planning & Development, CLP Power Jason TU Co-Founder and CEO, MioTech Benedicte NOLENS Head, BIS Innovation Hub Jenny LEE Under-Secretary General, Hong Kong Green Finance Association John LO Founder, Asia Carbon Institute Moderator: Grace HUI Adjunct Professor, HKUST Division of Environment and Sustainability Energy and technology The energy industry must change to meet the climate transition. CLP Power (CLP), the larger of two electricity suppliers in Hong Kong, has a history of making technology investments. It now has I&T investments in Israel, the United States and mainland China. A major example of CLP’s investment history was its investment in HKNIC nearly 40 years ago in the Daya Bay Nuclear Power Plant across the border that had been providing, clean, stable, and affordable zero-carbon electricity to Hong Kong. Another example was Smart Charge, a joint venture between CLP and HK Telecom in 2016 to provide EV charging in Hong Kong. CLP, a member of Free Electrons, worked with other leading utilities around the world to enable start-ups to pilot projects, deploy products, and facilitate investment opportunities.26 CLP Innovation Enterprises Limited could be considered a corporatesponsored start-up focused on using decarbonisation and digitalisation to help turn CLP, a traditional energy utility, into a digital company and transform the energy market. Data and technology MioTech, a Hong Kong homegrown company, started life in fintech and became a data and carbon technology service with 300 employees focused on Asia.27 The market had been growing quickly – in 2020, there were only 108 listed companies in Hong Kong that had set carbon targets but by 2021, the number had grown to 651 (out of ~2,500). There were three pressure points for companies to start reporting – pressure from regulators, clients, or bankers and investors. While companies were willing to report but those that had not