Beyond Net Zero: Much to Lose by Doing Nothing, and Everything to Gain by Doing Something

Executive Summary

Hong Kong as a city is uniquely positioned to adapt to a new normal and share learnings to other modern cities as they face and adapt to rising climate challenges. Why is this? The combination of local environmental exposure conditions coupled with historically rapid advancements in building design practices and construction technologies mean that Hong Kong has more opportunity than most to take up the mantle as the trailblazer for modern and climate resilient cities. But only if it acts quickly and methodically.

IXO Partners’ in-house studies reveal that while the city’s buildings exhibit remarkable strengths, there is substantial and untapped investment potential across three key areas: real energy-use reduction, real carbon reductions, and real climate resilience. As highlighted by our Managing Partners in public and private forums during 2024, it is imperative for Hong Kong to act quickly to capitalize on these opportunities while adopting a systematic approach to revitalizing the city and strengthening its resilience. Importantly, there also exists an outsized risk: without targeted adaptation, the city risks environmental degradation on a scale which may soon be insurmountable.

This first major opinion piece released by IXO Partners deep dives fundamental truths about Hong Kong and its ability to rise to the challenge of climate change, from the perspective of our founders’ specialist expertise. Entering our third year of business, IXO Partners recognise that our contextual knowledge of the city is not only diverse; it is diverse enough to offer new perspectives on how to re-modernise the city for its inhabitants. In this article, we explore the relatively unconsidered contribution of physical materials in crafting the city’s climate responsiveness and how we expect interdisciplinary science and engineering to fuel Hong Kong’s to strike out as a centre-for-excellence in green investment, innovation, and education.

In short, in this city where IXO Partners is established and in which our founders call home, this article explores how much has everything to gain in taking decisive steps towards responding to climate threats.


Setting the Scene: What is Remarkable (and What Must Adapt Quickly)

Hong Kong was, like many of its contemporaries, built in leaps and bounds. With landmark projects creeping into the skyline in the early 1970s, building construction hit its stride from the mid-1980s and the city grew quickly upwards and outwards, shaping itself into the city we recognise today. Hong Kong is now home to the greatest number of skyscrapers globally (554 no. buildings taller than 150m), with the largest urban population living at or above 15 storeys; and we estimate it is also home to the greatest range of curtain walling technologies spread over 50,000 buildings or more.

To the outside observer, many of the statistics relating to Hong Kong’s built environment are remarkable and unrivalled, particularly considering the significance of its physical constraints: severe typhoons, dangerous rainstorms, limited available land, (historically) unstable slopes. As insiders and engineers, the view is no less remarkable: the city is home to one of the most tightly regulated building industries, with an exceptional framework to protect the city’s inhabitants from building failures in traditionally extreme environmental events.

However, the local building industry regulatory ecosystem which we know intimately, and which enabled such phenomenal transformation, is now so complex and burdened by such contradictory pathways, that it can be difficult to see what can and should be modified safely for the city to respond effectively to climate change.

Compounding the challenge, IXO Partners estimates that Hong Kong has five years at most to fundamentally remodel its approach to building design, safety and durability. At the heart of this urgency resides five very different and intertwined issues; some of these are common to other modern cities, but some are unique to Hong Kong. The five issues are:

  1. Little to nil performative maintenance of existing building stock,

  2. Significant number of buildings operating beyond service life without major maintenance,

  3. Poorly designed buildings from energy consumption standpoint,

  4. Retiring professional expertise,

  5. Increased severity of environmental conditions.

Against this backdrop, the good news is limited but it is of the best sort: our buildings are amongst the most structurally robust in the world, and we have a significant number of them. Strong physical foundations allow us to flex into areas of sustainability considered largely out of reach in most modern cities.

So, with 2030 as our target year, we move now to outlining the real actions IXO Partners advocates to drive measurable impact. Within each of these actions lies significant consideration and study; these are based on our unique lens. Please reach out to us directly for further details and we are happy to share references where these are not subject to non-disclosure agreements.

Driving A Measurable and Systematic Response: Our 9-Point Plan for Hong Kong

The Way Forward is Tough but Tantalising

Hong Kong stands at a critical juncture.

With its unique combination of environmental challenges and opportunities for innovation, the city is well-positioned to lead the way in climate resilience. However, this potential can only be realized through proactive, coordinated efforts that involve all stakeholders from public to private players. Government has a key role to play by improving and providing avenues to encourage practical, industry led innovation. Private sector also has a key role to play to by focusing on meaningful outcomes and long-term gains. A collaborative, forward-thinking approach will not only enhance the city’s resilience but also provide a blueprint for other cities grappling with similar climate challenges.

The stakes are high: failing to act could result in substantial degradation of the urban environment, while taking the initiative could unlock unprecedented investment opportunities and establish Hong Kong as a global leader in innovation, liveability and climate resilience.

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