EU Ambassador to Hong Kong and Macao Harvey Rouse, speaking at the fifth edition of the Greenway sustainability forum on 2 July 2026, argued that climate action and economic growth are complementary, not contradictory, citing the EU's 37% emissions reduction since 1990 alongside 71% GDP growth. Rouse delivered the keynote at the event co-organised with the European Chamber of Commerce, which brought together business, diplomatic and civil society stakeholders.
Rouse highlighted the EU Emissions Trading System (ETS) as a key driver, noting that emissions from covered sectors have been cut by about half since 2005 while generating over EUR 200 billion reinvested in clean technologies. He announced that the European Commission will present proposals next month to modernise the ETS, including new sector-specific benchmarks. The ambassador also defended the Carbon Border Adjustment Mechanism (CBAM) as a fairness tool, not protectionism, and pointed to recent simplifications for smaller businesses and greater flexibility for trusted partners, including mutual recognition of accreditation bodies — an area where Hong Kong's business services sector could contribute.
On transport decarbonisation, Rouse noted that sustainable aviation fuel production in Europe reached around 1.4 million tonnes, exceeding the 2025 target of 2%, and that EU policies aim for 6% sustainable aviation fuel by 2030 and 70% by 2050, with shipping carbon intensity reductions of up to 80% by 2050. In sustainable finance, he cited the EU Taxonomy as having mobilised hundreds of billions of euros, with large listed European companies reporting approximately EUR 800 billion in Taxonomy-aligned investments. Rouse also mentioned the European Green Bond Standard and ongoing talks to launch a Financial Services Dialogue between Hong Kong and the EU, following intensified senior exchanges over the past year.
The speech carried implications for several stakeholder groups. EU businesses in Hong Kong, which grew 8% last year and hold EUR 93 billion in FDI stock, stand to gain from deeper cooperation on sustainable urban planning, smart infrastructure and green finance as Hong Kong develops the Northern Metropolis. Hong Kong's government and businesses face opportunities to align with EU standards on carbon pricing and sustainable finance, potentially easing access to the EU market but also requiring adaptation to CBAM compliance. EU producers benefit from CBAM's level playing field, though smaller firms may face administrative burdens despite recent simplifications. Global supply chains, particularly in Asia, could see accelerated decarbonisation as EU carbon costs extend to imports, but may also face higher compliance costs in the short term.