Finally, sea level rise (SLR) was explicitly highlighted in Hong Kong’s first-ever Five-Year-Plan (HK-1FYP) 2026-2030 as well as in the Chief Executive’s Policy Address in September 2026! Yes, we celebrated as it’s something we’ve been asking for since 2021 – in 3 first steps to protect HK (2021) and our letter to John Lee to futureproof HK (2022).

Looking through the FYP & speech, we were pleased to see our recommendations successfully incorporated & SLR firmly tabled. But while we welcome this important first step, policy actions are still not addressing these risks at the right levels – still leaving HK exposed – see HK & Fast Rising Seas – 3 Must-Do’s to Keep HK Safe.

But celebrate wins we must … and so here are 3 wins and 3 wishes for the HK-1FYP as there is still far to go …

1. Sea Level Rise

Win #1: SLR firmly tabled in 1) the 2026 policy address and 2) the HK1FYP 2026-2030.

For the very first time, the policy address featured a section on “climate adaptation & resilience” explicitly naming SLR alongside other flood risks like extreme rainfall and storm surge as considerations in the Government’s flood & coastal management measures.

This is a key step forward – the last time climate risks were mentioned in the policy address was in 2023. Back then, there was no mention of SLR – only that HK should “scale up capability in coping with extreme weather” in response to Super Typhoon Mangkhut.

SLR mentioned under “development & security” section…

The HK-1FYP builds on this committing that “through multi-layered protection design, flood risks in coastal areas brought by SLR and storm surge will be mitigated”. This is good news as SLR amplifies storm surges. Importantly, in both documents, SLR is mentioned in the section to “Adopt a Holistic Approach to Development and Security, Enhance Public Governance Efficacy” – signaling flood control & shoreline management among its core priorities.

But, while SLR was mentioned, actual policies for SLR were missing – this means we are still far from safeguarding HK from rising seas.

Singapore on the other hand passed a Coastal Protection Bill in March 2026 as well as issued a Code of Practice on Coastal Protection in 2026 which all landowners in Singapore will have to follow from 2028 – we unpack these new standards with PUB’s deputy CEO Angela Koh who spearheads the nation’s defence strategies against rising seas. So, to the wish …

Wish #1: HKSAR to issue a detailed Adaptation Action Plan (+SLR) like the rest of China in the HK-1FYP

In 2022, China released a “National Climate Change Adaptation Strategy 2035” and by February 2025, all provinces, municipalities & autonomous regions have completed their risk assessments and submitted their Adaptation Action Plans. Even leading cities like Shenzhen & Chengdu have submitted Adaptation Action Plans.

The HKSAR lags – the Climate Action Plan 2050 only briefly outlines the SAR’s adaptation & resilience strategy, without targets for 2035. HK therefore must catch up and produce an Adaptation Action Plan that is in line with national standards during its 1FYP period.

HK will see 40% higher SLR than the global average so must mobilise localised SLR research

To produce a comprehensive SLR plan, we cannot just rely on global projections as HK will see 40% higher SLR than the global average due to the Earth’s gravity & rotation. HK therefore needs to mobilise a dedicated SLR research centre to lead localised SLR knowledge to inform adaptation planning.

More importantly, we must keep an eye out on fast melting ice which is accelerating SLR. Countries that are ahead of SLR risks like the Netherlands and Singapore are shoring up coastal defences because they have invested heavily in local & regional SLR research and have a strong scientific understanding for the risks ahead. The Netherlands launched a 6-year Sea Level Rise Knowledge Programme in 2019 (which concluded in 2026 – see key findings) while Singapore dedicated SG$10mn to launch its National Sea Level Programme also in 2019.

As SLR will only accelerate, amplifying coastal threats from storm surges, we wish for HK to come up with a detailed plan … and one that protects HK at the “right levels” please – the current SLR risk gap is too wide! And while we are at it … why not aim for a Coastal Protection Bill as well!

2. Water Pipe Leakages

Win #2: HKSAR to upgrade 350km of aged water mains in the next 5 years.

In response to the high volume of water losses & pipe bursts, the Policy Address sets the ambition to “replace or rehabilitate a total of 350km of aged water mains with higher risk of leakage over the coming five years, at an average rate of 70km per year, double that for 2026-27”. Additionally, the Government will “reduce the number of water pipe bursts and serious leakage incidents by around 20 to 30 percent in the first five years”.

These are certainly steps in the right direction as water losses in HK are massive – while HK’s government mains leakage was at 12.8% in 2025, HK’s city-wide unmetered freshwater consumption, including burst pipes, was still over 38% for 2023/24!

Given rising water scarcity in a changing climate, HK must do its part in saving water which brings us to our wish …

Wish #2: Set water leakage target to 4-7% on par with Shenzhen & Guangzhou.

It’s great to see the government finally prioritizing water losses at scale, but we wish HK to be more aggressive and set target leakage rate to be par with the national rate of below 9%. Or do even better and get down to Guangzhou and Shenzhen’s leakage rates of 6.8% in 2025 and 4.57% in 2024 respectively.

Note that below 9% was the rate set in the 2021 “14th Five-Year Plan for Building a Water-Saving Society” for 2025! So, we are at least 5 years behind the Chinese Mainland!

HK$7bn down the drain from unmetered water losses in HK

HK’s massive water losses are a serious dent to the city’s public finances – according to the HKU Water Centre, unmetered losses at over 38% means that HK is “wasting” a staggering HK$7bn per year! Saving water saves money.

Given that HK has been running a budget deficit from 2022-2025, surely we should step up efforts in stemming water losses? With revenues to the government from land sale premiums falling from HK$121bn in 2018/19 to just HK$17.5bn in 2025/26, can we really afford to flush HK$7bn per year down the drain?

Worse still is that 70-80% of HK’s freshwater is imported from the Dongjiang, a tributary of the Pearl River which is a key water source for the entire GBA. During a drought in 2020-2022, Shenzhen suffered water shortage while the annual volume of water supplied to HK reached a historic high and HK’s water usage increased from from 1,027mn m3 to 1,066mn m3 – that’s just embarrassing.

At a minimum, let’s try and resolve “smaller” persistent cases like Fairview Park’s chronic water loss which still remains in stalemate, even when losses accumulate to HK$100mn. Solving this will support water innovations which brings us to the next point…

3. Adaptation Solutions & Financing Hub

Win #3: HK recognises climate risk impacts to financial sector & encourages the scaling up of adaptation finance

We have been saying that SLR poses systemic shocks to the financial sector since 2022 – see report here which shows that HK is very exposed. With ice risks expected to accelerate, we’ve asked for an Ice Plan B to avoid financial shocks here. So, we are pleased to see that the “HKMA will issue transition‑planning guidance for the banking sector in the third quarter to boost the capability of banks in risk management”. In addition, the HKMA will also “scale up the development of transition and adaptation finance in Asia, while identifying financing needs and capability gaps”.

Also as part of efforts to “enhance climate adaptation and resilience”, the Insurance Authority has set up a Climate Insurance Laboratory to “develop innovative insurance products” in collaboration with industry, universities & other stakeholders.

This is a no-brainer and we are pleased to see HK in the driving seat of this. To help speed things along – check out our white paper with HSBC & HKGFA on financing water resilience at scale by leveraging China’s financial product innovations.

HK to become an international water tech hub to showcase advanced water tech from Chinese Mainland

Furthermore, the HK-1FYP wants to make HK an international water tech hub as part of “high-quality development of the country’s water sector”. Advanced water tech from the Chinese Mainland could be brought to HK for pilot testing, transformation, and application, capitalising on HK’s internationalism to showcase these water tech to a global audience … or vice versa.

All this is a push in the right direction to kickstart HK’s adaptation market – which given rising climate risks could balloon to a multi-trillion-dollar industry – bringing us to our wish…

Wish #3: Let’s position HK as a global adaptation solutions hub!

We think HK can be even more ambitious – HK has the capacity to create, develop and lead a multi-trillion-dollar adaptation industry for China and Asia, not just as a financing hub, but also as an innovation & solutions hub – especially one for coastal engineering.

Why? Scientists are virtually certain that SLR is irreversible and even if we stop emitting now, at 1.4°C of warming today, we are likely to have locked in 6-9m of SLR. This points to an inevitable adaptation investment opportunity in coastal protection where HK has deep expertise in coastal engineering.

The coastal adaptation market can be lucrative – Indonesia’s seawall will cost US$80 billion and Singapore is prepared to spend SG$100 billion for SLR defence alone, whereas the Netherlands is investing EUR650 billion into areas that may be affected by SLR.

HK can leverage its decades of expertise to become a regional coastal engineering hub:

  • Reclaimed 80km2 of land since the late 1800s – equivalent to adding an entire HK Island from the sea!
  • Back in the 1960-70s, Hong Kong pioneered the world’s first coastal reservoir Plover Cove as well as built High Island’s reservoir sea walls to be over 100m high. These have withstood all typhoons so far.
  • Other coastal feats include building the world’s longest sea crossing – the HK-Zhuhai-Macau bridge, as well as 3 underwater tunnels.

Bolder & faster …

Overall, the Government is making progress towards a climate ready HK, but we can be bolder and move faster. We must because the world’s ice is melting faster than ever, placing all coastal cities downstream of rapid SLR.

Rising seas are not a matter of if but when. Facing this cold hard truth is difficult, but if we lean into it, we can position HK as a safe haven, protecting our livelihoods while maintaining long-term investor confidence.

The next 5 years will bring a new torrent of “never-before-seen” climate disasters as risks escalate to new territories. HK has all the right ingredients to protect ourselves, lead Asia’s adaptation & make money in adaptation – are we ready to step up to the plate? Hopefully, the 2027 Policy Address will incorporate some of our wishes above and bring us closer to where we need to be.

Further readings

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