Q & A (English US)

Q & A

About the Climate Change Business Forum (CCBF)
How will the CCBF work?
What is the link to the Business Environment Council Limited
The science: What is climate change?
How will Hong Kong be affected by climate change?
What CO2 reduction will be required in Hong Kong?
Is there a difference between climate change and air pollution?
What are the major challenges and opportunities for Hong Kong companies?
What should business be doing to address climate change?
Should Hong Kong become a centre for emissions (carbon) trading?
What is the Intergovernmental Panel on Climate Change (IPCC)?

1. About the Climate Change Business Forum (CCBF)

The Climate Change Business Forum (CCBF) is an initiative of the Business Environment Council (BEC). Its purpose is to be a leadership platform that brings together industry leaders and climate change specialists, to engage in research; to develop and communicate best practices, and to assist in the development of sound climate change policies for Hong Kong. Membership of the CCBF comes from five key sectors, namely, power, transport, property, manufacturing, and finance. These sectors have been chosen as significant users of energy or producers of products whose use results in substantial emissions of greenhouse gases; some will have assets or investments that will be adversely affected by changes in climate; all face the prospect of increased regulation in one form or another.

The CCBF aims:

To influence the business community to take concrete steps to reduce emission and share best practice on the carbon intensity of businesses
To identify and communicate the opportunities and risks businesses will face from climate change
To commission research on the impacts of climate change to business, relevant to Hong Kong on both a local and international level
To engage with other key local and international organizations with an interest in the climate change issue

2. How will the CCBF work?

The Climate Change Business Forum (CCBF) is sponsored by Patron and Gold member companies. It is overseen by the Patron Committee, strategically led and managed by its Executive Committee, and intellectually supported by its Best Practice Committee. The Secretariat led by the Business Environment Council (BEC) direct and delivers the implementation of the Climate Change Business Forum's work.

3. What is the link to the Business Environment Council Limited

The CCBF as an initiative of the Business Environment Council (BEC), and secretariat of the CCBF is a legal entity of the BEC. Established in 1989, the BEC is an independent, non-profit organisation set up by business 18 years ago as an environmental solutions provider and has a membership representing more than 20,000 companies with a combined market capitalisation of HK$3 trillion and 1 million employees. (BEC Website).

4. The science: What is climate change?

The United Nations Framework Convention on Climate Change (UNFCCC) defines climate change as: “a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods”. In other words, the UNFCCC uses the term Climate Change to mean only those changes that are brought about by human induced changes in green house gases (GHGs).

The Intergovernmental Panel on Climate Change (IPCC) concluded in 2007, "most of the observed increase in globally averaged temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations" via the greenhouse effect. Rising temperatures therefore are due primarily to the build-up of carbon dioxide (CO2) in the atmosphere from the burning of increasing amounts of fossil fuels, with land-use change providing another significant but smaller contribution. Once released into the atmosphere, CO2 traps heat that would otherwise escape back into space.

5. How will Hong Kong be affected by climate change?

This question needs to be further researched, but adjusting to climate change is a local and regional problem and one that will affect everybody. A study in 2006 by the Hong Kong Observatory predicts a warming of 4.8°C over the next century. This will not only mean more hot and fewer cold days but an increase in variability i.e. change will impact Hong Kong through many different pathways. It will affect our water and food supplies. It will influence human health, both directly and through its effects on diseases and their vectors. Town planning, architecture and the construction industry will have to adjust. It will also impact both terrestrial and marine biodiversity, with many organisms finding themselves in the wrong place and needing to migrate to survive. Also there will be possible winter monsoon precipitation decreases and summer monsoon increases indicating an increase in seasonality. Research on the regional impacts of climate change have been a low priority in Hong Kong, in comparison to other countries. The EPD estimates that for a 1°C temperature rise, the total energy costs of Hong Kong are expected to increase by HK$1.65 billion. For 2ºC rise, the estimated impact is HK$3.26 billion. For 3ºC rise, the estimated impact is HK$5.50 billion.

Would Hong Kong be affected by flooding in the region?

This question needs to be further researched. However, Hong Kong based Think Tank Civic Exchange has done a study called on the Impacts of Climate Change in Hong Kong and the Pearl River Delta that concludes that even small water-level rises combined with extreme weather could cause flooding across the low-lying delta. The Pearl River delta is southern China's manufacturing and trade centre. The knock-on effects of such flooding could be felt globally, the report suggests. The study looks at long-term changes in water levels and what can happen within a decade or two when small water-level rises combine with typhoons. The report suggests that flooding in the region would quickly lead to a shutdown in key industries and trade across the delta and in Hong Kong. (This question is answered further in our Learn More: Impacts to Hong Kong section).

6. What CO2 reduction will be required in Hong Kong?

Under the terms of the Kyoto Protocol1, China (including Hong Kong) is not required to limit its greenhouse gas emissions but China must submit national communications on its situation to the United Nations, and thereby requires Hong Kong to submit its emissions.

As noted above, the latest IPCC report indicates that avoiding dangerous climate change requires global emissions peaking by 2015 and reducing by 50% to 85% from year 2000 levels by 2050. In line with this, Hong Kong will have to make significant cuts in its emissions even though Hong Kong is a small emitter of GHG accounting for about 0.2% of the global GHG ~ about 44.8 million tonnes of CO2-equivalent (CO2-e) in 2005. This is 14% above 1990 levels (the UN uses 1990 as base year) and business as usual projection calculates a rise to 35% of 1990 levels by 2010.

7. Is there a difference between climate change and air pollution?

Some people confuse Hong Kong’s haze as a climate change problem. However, Hong Kong’s air pollution is a local and regional problem caused by air pollutants such as sulphur dioxide (S02), nitrogen dioxide (NO2) and particulates (PM10 and PM 2.5) and Ozone (O3). Air pollutants are also those that endanger the health, safety, or welfare of persons, interferes with normal enjoyment of life or property, endangers the health of animal life or causes damage to plant life or property.

The climate change problem refers to a concentration of greenhouse gases including: water vapor, carbon dioxide (CO2), methane (CH4), Nitrous Oxide (N2O), and chlorofluorocarbons (CFCs). These are mainly invisible and trap and mix freely around thus creating a global problem which requires action by all countries in the world. Scientists estimate that CO2 remains in the atmosphere for anywhere from 50-200 years. Methane, on the other hand, remains stable only about 12 years. Nitrous Oxide's life span reaches the 120 year mark.

Work to reduce Hong Kong’s and Pearl River Delta (PRD) pollution haze is, however, a useful precedent for the work which will be required to reduce GHGs. Of note, is the cross-boundary initiative for a regional emissions trading arrangement between the governments of Hong Kong and Guangdong. This initiative takes 1997 as the base year, and air pollutants are to be cut by 55%, SO2 by 40% and NOX by 20% by 2010.

Source: EEA 1995, Centre for Airbourne Organics 1997. Click image to enlarge

Should there be a policy link for climate change and HK’s pollution?

Yes. Emission control strategies that simultaneously address air pollutants and greenhouse gases may lead to a more efficient use of the resources on all scales. There is an increasing awareness in Hong Kong in the importance of addressing the linkages between the traditional air pollutants and greenhouse gases. Many of the traditional air pollutants and greenhouse gases have common sources, their emissions interact in the atmosphere, and separately or jointly they cause a variety of environmental impacts on the local, regional and global scales. Implementing climate policies, e.g. in order to achieve the Kyoto Protocol targets, can significantly reduce the costs of meeting air quality targets. In the same way, meeting stringent air quality targets is at the same point likely to require measures beyond end-of-pipe technological solutions, and require broader structural changes (e.g. in the energy mix), consistent with climate goals.

(Source: http://reports.eea.europa.eu/technical_report_2004_5/en)

What is the definition of an air pollutant?

Air pollutants are defined as such if they are harmful to our health. Primary air pollutants include carbon monoxide from car exhausts and sulfur dioxide from the combustion of coal. Further pollution can arise if primary pollutants in the atmosphere undergo chemical reactions. The resulting compounds are called secondary pollutants. Photochemical smog is an example of this. When referring to air pollution in Hong Kong one is making reference to air pollutants that include:

Sulphur Dioxide (SO₂): Sulphur dioxide (SO₂) is formed primarily from combustion of sulphur-containing fossil fuels. In Hong Kong, power stations are the major sources of SO₂, followed by fuel combustion, marine vessels and vehicles. Exposure to high levels of SO₂ may cause impairment of respiratory function and aggravate existing respiratory and cardiac illnesses. Prolonged exposure at lower levels may also increase the risk of developing chronic respiratory diseases

Volatile Organic Compound (VOC): Volatile organic compounds (VOCs) are organic chemical compounds that have high enough vapour pressures under normal conditions to significantly vaporize and enter the atmosphere. VOCs are found in a lot of products such as solvent-based paints, printing inks, many consumer products, organic solvents and petroleum products. VOCs are an outdoor air pollutant. In this field they are often divided into the separate categories of methane (CH₄) and non-methane (NMVOCs).

Nitrogen Oxides (NOx) and Nitrogen Dioxide (NO₂): The various chemical species of the oxides of nitrogen are collectively termed as nitrogen oxides. From an air pollution standpoint, the most important nitrogen oxides in the atmosphere are nitric oxide (NO) and nitrogen dioxide (NO₂). Emissions from power stations and motor vehicles (diesel vehicles in particular) are the two major sources of NOx in Hong Kong. NOx emissions from motor vehicles have greater impact on roadside air quality. Nitrogen dioxide is an important part of urban haze or photochemical smog. Long-term exposure to NO₂ can lower a person’s resistance to respiratory infections and aggravate chronic respiratory diseases.

Carbon Monoxide (CO): Carbon monoxide (CO) comes mainly from vehicular emissions - small amount of which may also come from combustion of fuels from factories and power stations.

Ozone and Photochemical Oxidants: Ozone is not a pollutant directly emitted into the air from particular activities characteristic of urban or industrial areas, and can, therefore, be referred to as a secondary pollutant.

Respirable Suspended Particulates (RSP’s): RSP are the proportion of total suspended particulates. Total suspended particulates (TSP) are small airborne particulates such as dust, fume and smoke. Major sources of TSP include power stations, construction activities and vehicle exhausts. They have the ability to penetrate deeply into the lungs. (Source: EPD, HKSAR Gov't)

8. What are the major challenges and opportunities for Hong Kong companies?

This needs to be further researched, however the major challenge is for more Hong Kong companies to take climate change seriously based on a sector-by-sector approach. It is expected that policies and measures developed in this way will be the best way forward for Hong Kong.

Addressing climate change from a sectoral point of view already appears to be happening (globally) for the electricity utilities sector. CLP – (a CCBF member) and a member of the World Business Council for Sustainable Development (WBCSD) Electricity Utilities Sector Project (made up of a group of ten global utilities companies) helped contribute to a landmark report titled ‘Powering a Sustainable Future: Policies and Measures to Make it Happen’. This report highlights that many low-carbon solutions already exist, but their development and deployment at a sufficient scale will not occur without the right regulatory and market frameworks. The report also highlights the potential for the electricity sector to reduce its total emissions as opposed to simply leveling off, as is the case for most other sectors.

Another challenge is that many of the solutions needed to tackle climate change already exist, but leadership is needed to create the right environment to enable these solutions to come to fruition.

9. What should business be doing to address climate change?

The starting point for any company is for them to begin by measuring their GHG emissions. The standard for doing this is the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development, the Global GHG Register hosted by the World Economic Forum, and ISO standard 14064. While doing this, larger companies may respond to the Carbon Disclosure Project questionnaire www.cdproject.net/questionnaire.asp whose questions systematically address the risks and opportunities of constraints on carbon emissions.

Next, many companies adopt voluntary climate-related targets such as improving energy efficiency and reducing GHG emissions. This can involve examining the GHG emissions of the life-cycle of the products they make. They may also invest in new technologies and projects designed to reduce emissions. This ‘learning by doing’ may improve a company’s competitive position and reduce avoid, or prepare for, future regulation of GHG emissions.

10. Should Hong Kong become a centre for emissions (carbon) trading?

This is an issue which is currently being discussed in the Hong Kong Exchanges and Clearing (HKEx) and is an issue that needs further research particularly as carbon trading schemes grow in importance globally. Hong Kong should aim to become a carbon trading hub as part of its role as a premier financial centre. This could be achievable, given Hong Kong’s strengths as a financial centre.

11. What is the Intergovernmental Panel on Climate Change (IPCC)

The IPCC is sponsored by the United Nations Environment Programme (UNEP) and the World Meteorological Organisation (WMO). The IPCC does not carry out research, nor does it monitor climate or related phenomena. A main activity of the IPCC is publishing special reports on topics relevant to the implementation of the UN Framework Convention on Climate Change (UNFCCC). The IPCC bases its assessment mainly on peer reviewed and published scientific literature.

The IPCC has produced four comprehensive assessment reports on the status of global climate change, with the Fourth Assessment Report (AR4 Synthesis Report) released in 2007. This Fourth (AR4) leaves us in no doubt that human activity is the primary driver of the observed changes in climate.There is high agreement and much evidence that all stabilisation levels assessed can be achieved by deployment of a portfolio of technologies that are either currently available or expected to be commercialised in coming decades, assuming appropriate and effective incentives are in place for development, acquisition, deployment and diffusion of technologies and addressing related barriers. {WGIII SPM}