Blue Finance for a Blue Economy – Pathways to Marine Conservation in Hong Kong

Blue Finance for a Blue Economy – Pathways to Marine Conservation in Hong Kong

By Kate Martin, Sophie le Clue, Sam Inglis 22 May, 2025

From shipping & submarine cables to coastal properties – HK is built on a marine economy yet invests little in its resilience. Find out why from the authors of ADM Capital Foundation's upcoming report plus how to rethink the way these assets are valued, protected & financed

Hong Kong’s future prosperity is inextricably linked to the health of its surrounding marine resources. The soon to be released research “Blue Finance for a Blue Economy: Pathways to Marine Conservation in Hong Kong” exposes both the city’s reliance on these resources and the urgent need for a paradigm shift in how these assets are valued, protected and financed.

The Paradox of Dependency and Neglect

Hong Kong’s marine economy, while not widely recognised, is as extensive as it is diverse, underpinning critical economic pillars – from the maritime and shipping industry, fisheries, tourism and ICT submarine infrastructure, to the property sector where waterfront premiums command staggering valuations. The port and maritime sector alone contributes 4.2% to GDP, the ICT sector 6.2% and the city’s unique use of seawater for flushing and cooling demonstrates another largely unrecognised free and innovative use of this resource.

HK’s marine economy underpins critical economic pillars…

….from the maritime & shipping industry, fisheries, tourism & ICT submarine infrastructure to the property sector

Outstanding marine biodiversity and crucial ecosystem services provided by Hong Kong’s marine resources are no less valuable. The ocean is not just a utility for the benefit of commerce; it is a living asset that produces oxygen, sequesters carbon, and shields the city from climate extremes. Its ecological value, from 5,900 marine species, richer hard coral species than the Caribbean to critical habitats for endangered species, is globally significant. Yet, these benefits are under constant threat from urbanisation, overexploitation, pollution and climate change.

Despite Hong Kong’s irreplaceable reliance on marine ecosystems, conservation spending remains shockingly disproportionate – a mere fraction of its land-based protections. The city safeguards 40% of its terrestrial area through 24 country parks, yet barely 5% of its seas benefit from similar status (just eight marine parks and one reserve). This neglect flies in the face of the global goal of protecting 30% of the ocean by 2030 under the Kunming-Montreal Framework.

However, conservation spending on marine ecosystems remains shockingly disproportionate…

…why does a city built on a marine economy invest so little in marine resilience?

The consequences are already visible. For example, Chinese white dolphin populations have plummeted by 70% in two decades – a direct result of ‘develop first, restore later’ policies, where conservation comes too late. Mangrove forests crucial for carbon sequestration, fish spawning and protection against storm surges have almost disappeared, while critical wetland habitats have declined by a third over 25 years.

The disparity demands urgent answers: Why does a city built on a marine economy invest so little in marine resilience? What policy and financial mechanisms are needed to align Hong Kong’s policies with blue economy ambitions?

One sea two systems

The disconnect is particularly stark when Hong Kong’s fragmented policies are compared to Mainland China’s systemic approach, despite joint stewardship of shared waters. Across the border, the blue economy is embedded into national policy, blue taxonomies have been developed and clear targets have been set for marine protection and sustainable growth.

The disconnect is stark – HK’s policies are fragmented vs. China’s systematic approach

To catch up, Hong Kong must transition to a sustainable blue economy – one that maintains, restores, and protects marine ecosystems while driving economic growth and climate resilience.

Blue finance: Innovation and Collaboration

The report is pragmatic in its recommendations. It recognises that public funding alone is insufficient and calls for a suite of innovative financing mechanisms that leverage Hong Kong’s exceptional financial capacity and expertise:

• Blue Bonds and Blue Loans: Leveraging Hong Kong’s expertise in green finance to issue blue-labelled debt, signalling commitment and attracting private capital for marine projects.
• Blue Tech and Science: Building on Hong Kong’s strong innovation and technology sector to become a regional hub for marine technology, supporting startups and commercialising research that addresses marine challenges.
• Conservation Trust Funds (CTFs): Introducing a “blue theme” to existing funds like the Environmental Conservation Fund could swiftly mobilize resources for marine protection.
• Blended Finance and Public-Private Partnerships: Combining government guarantees, philanthropic capital, and user-pays models to create sustainable funding streams for marine protected areas and blue innovation.
• The need for clear metrics is also emphasised in the report – such as using Gross Marine Product (GMP) and Gross Ecosystem Product (GEP) – to value marine assets and guide investment decisions.

Policy and Leadership: The Time is Now

HK can leverage IMO’s new decarb framework to provide opportunities for blue finance…

…+ the Biodiversity Strategy & Action Plan to embed marine conservation in economic planning

The year 2025 provides a pivotal moment. At the same time that Hong Kong‘s ambition is to be a leading international maritime center, the IMO has announced plans to introduce a legally binding framework that will set a mandatory fuel standard and GHG emissions pricing for shipping to decarbonise globally – providing unparalleled opportunities for blue finance. Hong Kong’s imminent Biodiversity Strategy and Action Plan (BSAP) offers a rare opportunity to embed marine conservation at the heart of economic planning, while the Northern Metropolis provides a platform for the development of nature based solutions.

The report urges Hong Kong and the government to:

• Recognise the blue economy as a pillar of sustainable growth.
• Develop a comprehensive marine policy and blue economy strategy.
• Foster collaboration between government, business, finance, academia and philanthropy.
• Create enabling conditions for private investment, including risk mitigation tools and fiscal incentives.

Conclusion: Blue is the New Black

Hong Kong stands at a crossroads. The city’s marine resources are both a foundation for prosperity and a fragile inheritance. The report’s message is unequivocal: without bold leadership, innovative financing, and a holistic policy framework, Hong Kong risks squandering its blue wealth and falling further behind regional peers.

HK stands at a crossroads, but with the right vision it can lead in blue finance & sustainable marine mgmt

But with the right vision and commitment, Hong Kong can become a global leader in blue finance and sustainable marine management – securing ecological resilience, economic opportunity, and a legacy for future generations. The time to act is now.

Further readings

• Narwhale Ventures: Decarbonization of the Ocean Economy – Excited by the crucial role ocean startups play in decarbonizing the blue economy, Schulze co-founded the Narwhale Ventures fund. We sit down to hear more about it and what she’s got in the pipeline
• Global shipping is under pressure to stop its heavy fuel oil use fast – that’s not simple, but changes are coming – Can the maritime sector meet the revised 2023 IMO GHG Strategy targets despite its fossil fuel reliance? The Conversation talks with maritime industry researcher Maier, exploring prospects & challenges of decarbonisation in shipping
• China ICT running dry? The rise of AI & climate risks amplify existing water risks faced by thirsty data centres – By 2030 water consumption of China’s data centres + AI growth could = usage of >500mn people! Water, climate & power risks are already high but could explode if left unchecked. Get on top the risks for ICT with CWR’s recent report

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