The scaling up of low carbon hydrogen technologies will be crucial for achieving the UK’s Net Zero target by 2050 and a sustainable energy future. Historically, hydrogen has been produced from fossil fuels and utilised across heavy industry processes (whether as feedstock in fertiliser production, steel manufacturing or petrochemicals). Low carbon hydrogen, produced with significantly reduced greenhouse gas emissions, can facilitate the decarbonisation of hard to abate industrial sectors.  However, it is not without its challenges. Production costs currently exceed certain national Net Zero targets more than two-fold (e.g. in Australia the target green hydrogen production cost is US$2/kg but the actual cost is US$9/kg and similarly in Canada the figures are just under US$3/kg (target) but US$8/kg (actual)) with more than half the production cost attributable to the cost of the power required for electrolysis.

As we step into the new year, the Hong Kong Government unveiled its ambitious 132-page Development Blueprint for Hong Kong's Tourism Industry 2.0. This comprehensive plan aims to overcome the current challenges posed by economic slowdown, heightened competition, geopolitical tensions and recruitment difficulties. With the collaborative efforts of many stakeholders in implementing the Blueprint, the expected value added by the tourism industry is projected to rise by approximately 60% over the next 5 years, from HK$75.3 billion in 2023 to HK$120 billion. Employment in the sector is also set to rise significantly, with an estimated 44% increase over the same period, bringing the total to approximately 210,000 jobs (up from 145,600 in 2023). The overarching strategy for Hong Kong's tourism development over the next five years is to solidify its status as a world-class premier tourist destination. The Government will be implementing the following four key strategies to achieve this goal: promoting tourism through culture, sports, ecology, and mega events; attracting and broadening the inbound visitor market from a more diverse range of geographies; advancing smarter tourism; and enhancing service quality and infrastructure. The highlights of each strategy will be briefly summarized below.

The second and third reading of the Construction Industry Security of Payment Bill concluded at the Legislative Council on 18 December 2024. As an important milestone of the security of payment regime in Hong Kong, the Construction Industry Security of Payment Ordinance (“Ordinance”) will be published in the Government Gazette on 27 December 2024. According to section 1(3), the provisions on power of Secretary for Development for registration and administration of Adjudicator Nominating Bodies (“ANBs”) will take effect on the gazettal date, i.e. 27 December 2024. The remaining provisions of the Ordinance will come into operation on 28 August 2025. Construction contracts entered into on or after this date will be governed by the Ordinance.

This insight highlights government initiatives in Southeast Asia that promote data centre development through Direct Power Purchase Agreements schemes. As jurisdictions compete to attract investment in the power intensive data centre and digital infrastructure sectors, they are also looking to do promote development in a way that is consistent with national decarbonisation commitments.

The Policy Address 2024 of Hong Kong was delivered by the Chief Executive on 16 October 2024 (the “Policy Address”). Among a series of reforms aimed at rejuvenating the city’s economy and enhancing residents’ livelihood, the Government has introduced initiatives to address housing affordability issues, promoting integrated development of culture, sports, and tourism, and building Hong Kong into an international hub for high-calibre talents. We will focus on these keynote policies from the Policy Address and set out in this article a list of key highlights involving the real estate and infrastructure sectors.