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Danish surplus-food stores show way for Hong Kong to cut food waste

http://www.scmp.com/print/lifestyle/food-drink/article/2049730/danish-surplus-food-stores-show-way-hong-kong-cut-food-waste?_=1480311512441

Wasteful Hong Kong, which consigns more than 25,000 tonnes of food to landfills every week, could learn a lesson from Denmark, where a supermarket selling surplus food has been so popular it recently opened a second store.

After launching in Copenhagen’s gritty inner city district of Amager earlier this year, the Wefood project this month attracted long queues as it opened a second branch in Norrebro, a trendy neighbourhood popular with left-leaning academics and immigrants.

Hipsters rubbed shoulders with working-class mums as a cooking school founded by Claus Meyer – a co-founder of Copenhagen’s celebrated Noma restaurant – handed out cauliflower soup and bread made from surplus ingredients.

“It’s awesome that instead of throwing things out they are choosing to sell it for money. You support a good cause,” says Signe Skovgaard Sorensen, a student, after picking up a bottle of upscale olive oil for 20 kroner (HK$22).

“Isn’t it great?” pensioner Olga Fruerlund says, holding up a jar of sweets that she planned to give to her grandchildren for Christmas. The sweets “can last for a hundred years because there is sugar in them”, she adds.

Selling expired food is legal in Denmark as long as it is clearly advertised and there is no immediate danger to consuming it. “We look, we smell, we feel the product and see if it’s still consumable,” project leader Bassel Hmeidan says.

All products are donated by producers, import and export companies and local supermarkets, and are collected by Wefood’s staff, all of whom are volunteers. The store’s profit goes to charity.

Prices are around half of what they would be elsewhere, but even its biggest fans would struggle to do their weekly shop here. The products available depend on what is available from donors, resulting in an eclectic mix that changes from day to day.

One weekday afternoon, Wefood customers were greeted by a mountain of Disney and Star Wars-branded popcorn, while the fresh fruit section had been reduced to a handful of rotting apples.

In Hong Kong, food banks solicit food past its sell-by date from supermarkets and other stores, but the response has not been encouraging.

“Managers always like to tell of how some stores used to donate until they got sued. This is particularly true since strict liability is imposed on food products,” Wendell Chan, project officer at Friends of the Earth (HK), recently wrote in the South China Morning Post.

“We estimate that businesses throw out HK$60 million worth of food yearly when almost half of low-income families lack reliable access to a sufficient quantity of affordable, nutritious food,” he wrote.

Writing ahead of World Food Day on October 16, Chan said Hong Kong throws out more than 3,600 tonnes of food as waste every day.

Food waste has become an increasingly hot topic in recent years, with initiatives ranging from a French ban last year on destroying unsold food products, to a global network of cafes serving dishes with food destined for the scrap heap.

British-based The Real Junk Food Project also opened the country’s first food waste supermarket in a warehouse near the northern city of Leeds in September. With a greater focus than its Danish peer on feeding the poor, the British project urges customers to simply “pay as they feel”.

A United Nations panel said earlier this month that supermarkets’ preference for perfect looking produce and the use of arbitrary “best before” labels cause massive food waste that, if reversed, could feed the world’s hungry.

Nearly 1.3 billion tonnes of food is wasted every year, more than enough to sustain the one billion people suffering from hunger globally, the UN Food and Agriculture Organisation says.

Denmark has managed to reduce its food waste by 25 per cent over the past five years, partly due to the influential “Stop Wasting Food” group founded by Russian-born activist Selina Juul in 2008.

Juul grew up in the 1980s Soviet Union and says she was shocked by the amount of food being thrown away in Denmark when she moved there as a 13-year-old in 1993.

“Surplus food has become very popular,” she says of one of the measures advocated by the group: offering heavy discounts on items that are about to expire, which is now done by most Danish supermarkets.

Inspired by Juul, one of Denmark’s biggest discount chains, Rema 1000, has become an unlikely champion in the battle against food waste. Two of its main initiatives are about reducing waste after the product has been sold: the company stopped offering bulk discounts in 2008 so that single-person households would not buy more than they could eat.

Last year it reduced the size and price of some of its bread loaves for the same reason.

“The biggest problem with food waste is among the customers,” says John Wagner, the chief executive of the Danish Grocers’ Association. Regular supermarkets are becoming better at forecasting demand for different products, but they need to do more to inform their customers that a lot of food is edible beyond its expiry date.

Wefood next year plans to open in Aarhus, Denmark’s second-largest city, but Wagner says the brand is unlikely to become a major chain.

“The problem should be solved before we get to the point where we have to give the products to a store like Wefood,” he says.

Additional reporting by Mark Sharp
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Source URL: http://www.scmp.com/lifestyle/food-drink/article/2049730/danish-surplus-food-stores-show-way-hong-kong-cut-food-waste?_=1480311512441

Auditor finds massive increase in illegal dumping of construction waste in Hong Kong

The report from the Audit Commission came a week after the Office of the Ombudsman announced it would launch a probe into the environmental protection, planning and conservation departments handling of illegal landfilling

The Environmental Protection Department lost HK$4 billion in foregone revenue over the last decade due to “significant under-recovery” of costs in providing disposal and sorting facilities for construction waste, according to the government auditor.

The department was slammed for lax enforcement over the illegal dumping of construction and demolition (C&D) waste, with the number of reported cases across the city tripling from 1,500 in 2005 to 6,500 last year.

The report from the Audit Commission came a week after the Office of the Ombudsman announced it would launch a probe [1] into the environmental protection, planning and conservation departments handling of illegal landfilling and fly-tipping cases on private land.

“In 2014-15, only 33 per cent, 44 per cent and 63 per cent of the costs of providing disposal services at sorting facilities, public fill banks and landfills were respectively recovered from the charges,” the auditor stressed. “From 2006-07 to 2014-15, the estimated unrecovered cost totalled HK$3.81 billion.”

The auditor stressed that charge rates under the existing scheme had not been revised or reviewed since 2006, despite nearly 10 years of repeated requests by the Financial Services and Treasury Bureau. It has only recently agreed to do so based on a “user-pay principle”.

“The lack of revisions to the charge rates in the past years to recover the costs incurred had reduced the effectiveness of the charging scheme on providing economic incentives for producers of abandoned C&D materials to reduce generation … practise waste sorting,” it said.

The Civil Engineering and Development Department (CEDD) currently charges HK$27 per tonne at public fill banks, HK$100 at sorting facilities and HK$125 at landfills.

The auditor urged the EPD to work with the CEDD to take measures to ensure fees and charges were “revised in a timely manner,” having regard to full-cost recovery principles, environmental implications and the impact on trade.

The EPD was also held to account for inadequacies in enforcing cases of illegal dumping.

It cited a trial scheme involving the installation of camera systems last year, in which 170 cases of illegal dumping of C&D materials was caught on tape. As of July 2016, the EPD had only taken prosecution action on 46 cases, the auditor said.

The slow progress was blamed on letters to vehicle owners being returned unclaimed, drivers or vehicle owners not providing details of cases and drivers claiming the dumping was carried out “under instruction”.

Both the directors of environmental protection and civil engineering and development said they agreed with the auditor’s report, pledging to strengthen actions to detect and prevent illegal dumping of waste and acknowledging that charging scheme needed to be adjusted.

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Source URL: http://www.scmp.com/news/hong-kong/health-environment/article/2048766/auditor-finds-massive-increase-illegal-dumping

Hong Kong landfills overflow as household waste rises for fifth year running

The amount of waste dumped in the city’s overflowing landfills has risen for the fifth year in row with the bulk of it still coming from households, new data has shown.

Two-thirds, or 3.7 million tonnes, of the 5.5 million tonnes of solid waste discarded last year was comprised of municipal solid waste – rubbish generated domestically from homes, and commercial or industrial activities – most of it food, paper and plastics. The remaining 1.8 million tonnes was mainly comprised of waste from the construction sector.

The city discarded 3.57 million tonnes of municipal waste in 2014, 3.48 million tonnes in 2013, 3.4 million tonnes in 2012, 3.28 million in 2011 and 3.3 million in 2010.

Environmental authorities in 2014 implemented a blueprint to cut per capita municipal solid waste disposal by 20 per cent by 2017 and 40 per cent by 2022.

“Between 2010 and 2015, the amount increased at an average rate of 1.9 per cent per year, outpacing population growth of 0.8 per cent but slower than economic growth of 2.9 per cent,” according to a research brief by the Legislative Council secretariat.

A full set of official 2015 waste data will be released by the government before the end of the year.

Recycling rates for municipal waste dropped 23 per cent in the same period, driven by a sharp decline in plastic recycling caused by fluctuations in waste import and exports.

While household waste remained the lion’s share of the mix of municipal solid waste, the brief pointed out that this proportion was shrinking. The share from the commercial and industrial sector rose from 27 per cent in 2010 to 36 per cent last year.

Hahn Chu Hon-keung, who heads environmental advocacy for The Green Earth was “not optimistic” that the government would meet either target if waste charging was not legislated soon.

“At stake will be whether or not the government can get a bills committee formed for the waste charging bill before the end of the first quarter next year,” he said. “The volume of waste disposal is still increasing and whatever they’re doing now, it’s not stopping the bleeding.”

The Environment Bureau hopes to prepare the necessary legislative proposals for the implementation within the legislative term.

It has hinted at the need to introduce mandatory source separation for food waste to ensure diversion of food waste from landfills and to maximise the recycling potential of food waste.
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Source URL: http://www.scmp.com/news/hong-kong/health-environment/article/2048341/hong-kong-landfills-overflow-household-waste-rises

China’s hairy crab scandal reveals depth of pollution crisis

Toxin-tainted crustaceans raise doubts over clean-up of showpiece lake

https://www.ft.com/content/df0c7b9a-abc4-11e6-9cb3-bb8207902122

Every autumn, Hong Kong restaurants serve a seasonal delicacy: hairy crabs, shipped the same day from lakes around the Chinese city of Suzhou.

But the territory’s food safety inspectors recently made a shocking discovery: some crabs in this year’s consignment contained dangerous levels of cancer-causing chemicals. Even worse, the crabs appeared to come from Lake Tai, a model in China’s fight against pollution after a multiyear, multibillion-dollar clean-up.

Has the clean-up failed? Or is something else amiss? The answer, says crab breeder Wang Yue, lies in “bathing crabs”, which carry the Lake Tai name but have spent minimal time in its waters.

Mr Wang and his family tend hundreds of crabs in baskets hung from bamboo posts in shallow Lake Tai, also known as Taihu. He estimates the market for crabs has grown to three times what families like his can produce, so crabs grown elsewhere are brought to the lake for a few days so that they can be sold on at a premium — a practice known as giving them a “bath”.

“The crabs here are sweet and tasty because the water is fresh. But people in other cities don’t know the difference,” he said. “Some people can make a lot of money by pretending they come from Lake Tai.”

Lake Tai and nearby Yangcheng Lake provide top-quality hairy crabs. But so many are cultivated elsewhere — in nearby lakes, ponds dug into former rice fields or even under solar farms — that prices have been depressed and breeders on Lake Tai struggle to break even.

The bathing crabs affair appears to be a classic Chinese food safety story, where an explosion in production outpaces regulators’ ability to police quality. But the bigger problem is the long shadow cast by China’s polluters.

A showcase environmental clean-up has markedly improved water quality at Lake Tai. But the costly success does little to address China’s broader soil pollution crisis.

Over the past decade, central planners drew up blueprints to tackle smog, water pollution and soil pollution by closing or moving factories, regulating emissions and improving monitoring — the playbook used at Lake Tai.

The result has been a steady improvement in COD, a measure of the organic content in water and one of Beijing’s environmental targets. But the dioxin and polychlorinated biphenyls found in the crabs could come from poorly regulated waste incinerators or steel sintering elsewhere in the Yangtze Delta region, or wherever the bathing crabs are raised.

“It may be discharged as air emissions but if it showed up in crabmeat it’s because the emissions got into the water and the soil, the sediment,” said Ma Jun, a Chinese environmentalist. Persistent organic pollutants such as PCBs “are hard to decompose. They are persistent. They will stay in the environment for a long time.”

From Mr Wang’s weir, the water smells fresh. A bucket of snails on his porch and the egrets perching on the bamboo struts testify to the improvement in water quality.

It used to be much worse. In the 1990s, 1bn tonnes of rubbish, waste water, pig manure and fertiliser entered Lake Tai every year. Petrochemicals, smelting and textiles turned the waterlogged region into one of the wealthiest in China. Local governments turned a blind eye to polluters.

In 2007 a toxic algae bloom cut off drinking water to 2m people for 10 days. Weeks earlier, authorities arrested a local man campaigning against factories dumping waste in the lake. He was jailed for three years.

After the algae bloom, Beijing declared the lake a natural disaster zone and ordered it cleaned by 2012. It shut factories and moved foundries to industrial zones, installed waste water treatment plants and discouraged pig farm expansion. A widened channel to the Yangtze river helped water circulate.

“There are 35m to 40m people around this lake who rely on its water. So the government had to prioritise it,” said Fang Yingjun, head of Lüse Jiangnan Public Environment Concerned Center, a non-governmental organisation. “Every year we go to the same spot to check the water for algae and every year it’s better. It really is much better. So much money has been spent.”

It was not easy. The warm, shallow lake is the perfect spot for organic pollutants to trigger algae blooms. At 2,338 sq km, it is one and a half times the size of Greater London — big enough to hide plenty of sins.

“You can’t really see the polluted water any more but companies are still good at disguise,” said Wu Lihong, the campaigner who was jailed. Lake residents still spot underwater pipes leading from factories. This summer a secret landfill for waste from Shanghai was discovered on an island in the lake.

And while Beijing focused on Lake Tai, it also encouraged polluting factories to migrate from wealthier areas to the poor hinterland. Meanwhile, ecommerce and cheap airfares allowed new crab farms to spring up around China.

Bathing crabs are likely to remain a barometer of China’s ability to clean up its environment for years to come.

Ombudsman to probe Hong Kong government’s handling of illegal waste dumping cases on private land

Watchdog seeks public views and information on government’s control over landfilling and fly-tipping activities

http://www.scmp.com/news/hong-kong/health-environment/article/2046612/ombudsman-probe-hong-kong-governments-handling

The Ombudsman will launch a direct investigation into possible inadequacies of the environmental protection, planning and conservation departments in handling illegal landfilling and fly-tipping cases on private land.

The self-initiated probe by the government watchdog comes amid an increased frequency of such activities in the New Territories and on Lantau Island, where loopholes in planning and waste disposal regulations often fail to curb destructive activities.

“Even though actions were taken by the departments concerned, those actions were criticised as futile and ineffective by different sectors of the community,” the office of the watchdog said on Wednesday.

Ombudsman Connie Lau Yin-hing said the three government departments fell within the ambit of the investigation and that the focus of the probe would be on powers, responsibilities, mechanisms and procedures in regard to the control of such illegal landfilling and waste dumping. This would include their enforcement action and its outcomes.

“The aim is to identify inadequacies in the current legal framework, system and enforcement regime,” Lau’s office said.

In a bid to make the investigation “more comprehensive”, the watchdog is seeking views from the public and those affected from now until December 16.

Green groups have long raised concerns about private land – often old agricultural lots near or within ecologically sensitive sites such as country parks – being filled or dumped on in what they describe as “destroy first, develop later” tactics.

A massive “waste hill” in Tin Shui Wai drew public outcry earlier this year and exposed a thicket of government red tape and entangled bureaucracy in response and enforcement.

Meanwhile, a court fight with the government continues over private land dumping in Lantau’s Pui O coastal protection area.

Roy Ng Hei-man of the Conservancy Association welcomed the Ombudsman’s initiative and urged it to pitch real policy and regulatory changes.

“It’s a systematic problem. We have long held the view that amendments are needed in the waste disposal and town planning ordinances,” Ng said. “Those involved can still take advantage of many legal loopholes.”

One example, he said, was the waste disposal ordinance, which he stressed could not regulate illegal dumping on private land even in light of the environmental impact.

Ng also questioned why the Lands Department was left out of the investigation.

The departments said they would cooperate fully when the probe begins.

How a ‘green living’ Hong Kong family survives on HK$8,000 monthly

They farm their own vegetables, recycle wood for fire and have not used toilet paper in over a decade

Environmentalist Mok Ho-kwong and his wife spend their days in a small, rural house tucked between Fanling and Kam Tin. They tend their farmland, where they grow their own vegetables.

They cook their dinners using abandoned wood from garbage, and wash their hair with tea seed powder. They wash their clothes with baking soda in a nearby stream.

They haven’t used toilet paper in over a decade, choosing instead to use water for cleansing.

Called “Ye Yan” in Cantonese – which translates to “Wild Man” – by those who know him, 34-year-old Mok is an environmentalist who has embraced what he refers to as “green living” for almost a decade. Mok, his wife and their six-month-old baby strive to live their lives in the most sustainable way possible by reducing their energy  usage and waste. The house is sparse, with only a computer, a fridge, and some lights.

“Consumption does not mean happiness. Happiness actually comes from everywhere, and is not related to money or property,” says Mok, who works as a nature educator and activity instructor for self-launched social enterprise Natural Network, which promotes nature.

“We don’t need much money to live this way. We spend less than HK$8,000 per month.

We’re definitely happier,” adds Mok.

He was introduced to the concept by a teacher during his university years. Although he was always interested in environmental protection, the teacher inspired him to go beyond recycling and really embrace a more subsistent way of living in order to minimise his environmental impact.

Although he recognises that his lifestyle may seem extreme, there are many other ways people can live more sustainably, Mok says. He suggests buying second-hand, local  or handmade products from small shops rather than chains. Mok also recommends bringing your own containers to the market when purchasing food, or your own bags to cut down on using new ones.

“I would like to show other people that such a lifestyle is happy and enjoyable, and one they are able to follow,” Mok said.

“I encourage more people to live with less dependence on money, and to start a ‘green living’ lifestyle to save our environment.”

How many earths do we need, if the rest of the world consumed as much as Hong Kong?

http://www.scmp.com/news/hong-kong/health-environment/article/2043119/how-many-earths-do-we-need-if-rest-world-consumed

Hongkongers consume so much that if everyone else in the world lived like us, we would need almost four Planet Earths to sustain us.

Hong Kong’s ecological footprint per capita, or the area required to sustain a person’s use of natural resources, has reached a historic high, according to a study by conservation body WWF, released last week. The city’s footprint is the second largest in Asia, behind Singapore, and 17thin the world.

About 3.9 earths would be needed to sustain humanity’s lifestyle if everyone consumed at the same rate as Hongkongers, the report said.

worst-offenders

The city’s footprint grew to 6.7 global hectares (gha) per person this year from 5.4 gha in 2014, when we would have needed three Planet Earths if everyone in the world lived like Hongkongers. Global hectares measure the average productivity of land and sea areas.

Worldwide, the average footprint per capita is 2.8 gha and we would need 1.6 earths to support this rate, the study showed.

Allen To Wai-lun, assistant manager of WWF-Hong Kong’s Footprint Programme, said although there were minor changes to the study’s methodology, the results clearly show a trend of unsustainable consumption.

Daily consumption by individuals, households and businesses are responsible for 76 per cent of Hong Kong’s footprint – 57 per cent of which comprises consumption involving personal transport, food, clothing, electricity, gas and other fuels.

The largest portion is made up of local carbon dioxide emissions and the carbon embodied in the products we use, many of which are imported.

“We buy too much stuff. We don’t have a sense of connecting our consumption to the deteriorating environment,” To said. “Changing the lifestyles of people is not easy.

But to alleviate [this problem] we need to consume less, and consume wisely.”

According to To, the city’s growing footprint can be attributed to fast fashion trends and meat consumption. The trend of readily available clothing at cheaper prices increased our cotton consumption, causing us to use more cropland, he said.

Added to that, increased meat consumption, particularly beef, has also led to more greenhouse gas emissions and contributed to climate change. The city also imports seafood from over 170 territories worldwide, ranking second in Asia and seventh globally in terms of per capita seafood consumption.

Ng Cho-nam, associate professor of geography at the University of Hong Kong, said cities usually had lower productivity due to lack of natural resources, and a high rate of consumption. This impacts their ecological footprint. Although countries like Australia consume lots of resources, their net deficit is small because they also produce a lot, according to Ng.

“When comparing a city with a country, then the city will have a bigger deficit as cities are the biggest places for consumption,” Ng said.

“We rely heavily on consuming imported goods. We enjoy cheap stuff, and then we export the pollution. We also have a huge number of tourists, [which] are top consumers,” Ng added.

In recent years, overexploitation, pollution, habitat loss and other consequences of unsustainable consumption has led to the deterioration of wildlife, fisheries and natural environments, as well as increased carbon accumulation in the atmosphere, WWF said.

Global wildlife populations could decline by more than two-thirds by 2020 compared to 1970 levels, WWF’s Living Planet Report 2016 showed. Between 1970 and 2012, populations of fish, mammals, reptiles, birds and amphibians decreased by 58 per cent.

Local wildlife populations have also deteriorated. Numbers of the Hong Kong grouper have declined by 63 per cent in two decades, and the fish is now an endangered species on the International Union for Conservation of Nature’s Red List – an inventory of the conservation status of species. Another fish, the golden threadfin bream, has decreased by 30 per cent in 10 years, while the three-striped box turtle is now critically endangered.

“Hong Kong certainly plays a role in wildlife trading through legal and illegal means [through the] consumption of shark fins, some coral reef fish, pets, reptiles, corals and more,” Ng said. “There are lots of wild birds being traded in Hong Kong, as well as animals whose body parts are used for traditional Chinese medicine like tigers and rhinos.”

In February, the Consumer Council released a report showing that 75 per cent of Hongkongers are prepared to pay more for sustainable products. But the government had yet to take adequate action, activist groups said. Now, the city’s Council for Sustainable Development is also conducting a public consultation that ends on November 15, seeking views on how to make our consumption more sustainable.

According to Ng, since the government is one of Hong Kong’s biggest consumers, it should include more products such as building materials under its green purchasing policy, to ensure that it takes the lead in sustainable consumption. More stringent labelling systems for green products would also allow consumers to make informed decisions, he added.

Allen To from WWF-Hong Kong said the government should provide incentives for consumers and businesses to trade and consume in a more sustainable manner. The city could take up green credit systems that are now being used in countries like South Korea, where consumers can receive points and other rewards when buying green products. They can then use the rewards to purchase other sustainable items or take public transport, he said.

Edwin Lau Che-fung, executive director of eco-friendly charity Green Earth, echoed the sentiments and urged the government to implement legislation to increase sustainability and reduce waste levels – such as more producer responsibility schemes requiring manufacturers, distributors and retailers to share the duty of collecting, recycling, treating and disposing products.

“There is still a lot of room for our government to take aggressive action towards lowering the ecological footprint for the whole of Hong Kong,” Lau said. “We are currently using the resources that we are borrowing from our future generations.”

WHAT IS AN ECOLOGICAL FOOTPRINT?

The ecological footprint refers to the total area required to sustain a person or community’s use of natural resources and shows their impact on the environment.

DEMAND AREAS:

• Cropland for producing food and fibre, including oil crops and rubber
• Grazing land for raising livestock
• Fishing grounds for marine and inland water ecosystems to generate primary production, which supports seafood catch and aquaculture
• Forest for providing fuel wood, timber products and pulp
• Built-up land or biologically productive areas for infrastructure
• Forests as primary ecosystems for long-term storage or sequestration of carbon to slow or reverse the build-up of CO2 in the earth’s atmosphere

FACTORS:

• Daily consumption of seafood and meat
• Daily consumption of timber and paper products
• Carbon dioxide emissions including those resulting from the trade of goods

Source: WWF-Hong Kong

CONSEQUENCES OF HUMAN ACTIVITY

WILDLIFE

On average, some monitored animal species declined by 58 per cent between 1970 and 2012 as a result of unsustainable agriculture, mining, fisheries and other human activities. The population sizes of vertebrate species dropped by more than half in just over 40 years, with an average annual decline of 2 per cent.

TROPICAL FORESTS AND GRASSLANDS

As of 2000, 45.8 per cent of the world’s temperate grasslands and 48.5 per cent of the world’s tropical and subtropical dry broadleaf forest habitats have been converted for human use.

FRESHWATER ENVIRONMENTS

Freshwater habitats have been damaged by pollution, dams, invasive aquatic species and unsustainable water extractions. Freshwater accounts for only 0.01 per cent of the world’s water, but it is home to nearly 10 per cent of the world’s known species.

MARINE LIFE

Between 1970 and 2012, marine life experienced an overall decline of 36 per cent. Overfishing is the most common threat to fish populations, and 31 per cent of global fish stocks are overfished.

CORAL REEFS

Three-quarters of the world’s coral reefs are now threatened and facing large-scale extinction as a result of mass bleaching and acidification. Although reefs cover less than 0.1 per cent of the ocean, they support over 25 per cent of all marine fish species. Threats to reefs include greenhouse gases, pollution, overfishing and coastal development.

CLIMATE CHANGE

Changes in temperature can confound signals for seasonal events such as reproduction and migration, causing them to occur at the wrong time. Some species will also have to adapt by shifting their migration range in search of suitable climate.

Source: Living Planet Report 2016 by WWF-Hong Kong in collaboration with the Zoological Society of London and Global Footprint Network

A China Bothered by Pollution Grabs Global Green Bond Lead

http://www.bloomberg.com/news/articles/2016-11-02/a-china-bothered-by-pollution-takes-global-green-bond-leadership

China is extending its dominance of the global market for green bonds, just as the Paris Agreement on climate change takes effect this week.

The world’s most-populous nation accounted for $21.9 billion of the $61.1 billion in global green bond sales this year, data compiled by Bloomberg show. China, which in 2015 sold less than $1 billion of the debt whose proceeds are earmarked for environmental projects, is accelerating regulation to channel funds toward reducing pollution, Moody’s Investors Service said in a report last week.

“When you live in Hong Kong or China, pollution is there, it bothers you,” said Vincent Duhamel, head of Asia in Hong Kong at Lombard Odier Darier Hentsch & Cie.

“There’s been a number of family offices here in Hong Kong that once Dad has given away the controls and the kids take over they go for a much more impact-investing viewpoint.”

Lombard Odier estimates that within three years green bonds will account for 20 percent of the $700 billion annual investment needed under the Paris Agreement on climate change, which takes effect Nov. 4. China issued new measures to boost investment in green industries on Aug. 31 before President Xi Jinping opened the Group of 20 meeting in Hangzhou in September with five-year environmental goals that would help make China “a beautiful country with blue sky, green vegetation and clear rivers.”

green-shoots

“Concerns over rising levels of pollution in China and Hong Kong have raised awareness of the consequences of China’s growth story that started a few decades ago,” said Magdalene Teo, head of fixed income research Asia, at Bank Julius Baer & Co. in Singapore. “A growing number of investors worldwide including Chinese investors are interested in combining their investment objectives with environmentally sustainable investments.”

Green industries are facing teething troubles. Shanghai Chaori Solar Energy Science & Technology Co. was the first company to default on onshore bonds in 2014 amid solar panel overcapacity. Asian clean-power investment slumped 41 percent to $70.1 billion in the first nine months as governments curbed subsidies, according to Bloomberg New Energy Finance. Authorities are struggling to integrate this year’s 13 percent jump in production from such plants into grids, it said.

“China is playing somewhat of a catch-up game,” said Daniel Shurey, a New York-based BNEF analyst. “A lot of the proceeds have been used for refinancing. We have seen a slowdown in investment in renewable energy which suggests refinancing won’t be as big next year.”

Bank of China Ltd. may price three-year green covered dollar bonds, underpinned by “qualifying green” domestic notes, as early as today at about 115 basis points over Treasuries, a person familiar said. While Chinese issuers often simply state proceeds will be used for activities on the domestic Green Finance Committee’s endorsed-projects list, the notes’ annual progress reports will help “build awareness” of responsible investing, Shurey said.

“While there are some investors who are attracted to green bonds because of the eco-friendly nature of the investment, the vast majority of Asian clients invest because of the specific return potential, name recognition and credit fundamentals,” said Todd Schubert, head of fixed-income research at Bank of Singapore, the private banking unit of Oversea-Chinese Banking Corp.

clean-energy-boom

Issuers can be confident of demand. Developer Modern Land China Co. plans a yuan green note after selling $350 million of similar dollar notes with a 7 percent coupon on Oct. 14. When MTR Corp., owner of Hong Kong’s mass transit system, raised $600 million selling 10-year green bonds on Oct. 25 it got orders for $1.4 billion.

“Green bonds are quite new in Asia and largely promoted by the Chinese government,” Ben Sy, head of fixed income, currencies and commodities at the private banking arm of JPMorgan Chase & Co. in Hong Kong. “Some institutional investors may have social responsibility mandates but I don’t see the awareness on the individual client level yet.”

Hong Kong doesn’t need a vast new town rising from the seas off Lantau

Tom Yam says the government’s vision for the East Lantau Metropolis rests on flimsy rationale, amid a lack of political will to secure targeted land elsewhere from vested interests

No sane investor commits to a project to be completed in 30 years with no data supporting the need for it, no estimate of the capital required, and no cost-benefit and risk
analysis.

Unless it is the Hong Kong government, using taxpayer money, to build what it calls the “East Lantau Metropolis”.

This metropolis takes pride of place in the Development Bureau and Planning Department’s study, “Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030”, due to be presented to the Legislative Council’s development panel on November 8.

According to this “planning vision”, the East Lantau Metropolis will be created by reclaiming land around two islands east of Lantau and connecting them to Mui Wo in south Lantau. On these 1,000 hectares will rise housing for 400,000 to 700,000 people, and a business district, with essential infrastructure such as utilities, telecommunications, schools and clinics. Bridges or tunnels and railways totalling 29km will link this vast new town with the rest of Lantau, Hong Kong Island and Kowloon.

Clearly, the metropolis will be the most expensive infrastructure project in Hong Kong’s history, probably costing as much as the Hong Kong-Zhuhai-Macau Bridge, the high-speed railway to Guangzhou and the third runway combined. Yet the government has not explained why the project is necessary, other than the anodyne rationale  of “strategic long-term growth”.

Chief Executive Leung Chunying mooted the concept of the East Lantau Metropolis in his January 2014 policy address.

Just three months later, his government requested HK$227 million for a feasibility study on reclaiming land for the metropolis. After barely 90 minutes of discussion at Legco’s development panel, the request was approved by 10-3 votes, thanks to progovernment legislators.

Since then, four requests to conduct an analysis of the need for such a metropolis in the context of population growth and housing supply have been rejected.

The Development Bureau now claims the East Lantau Metropolis is justified by its recently announced Hong Kong 2030+ study. Curiously, the study began in 2015, a year
after funding was requested for the metropolis.

According to the government’s own figures on population and housing, this metropolis is bound to become the mother of all white elephants. The Census and Statistics Department projects Hong Kong’s population, now 7.3 million, to peak at 8.22 million in 2043, then fall to 7.81 million in 2064. The number of households, 2.43 million in 2014, is projected to peak at 2.93 million in 2044 and drop to 2.91 million in 2049. So, just as the East Lantau Metropolis is completed in the 2040s – adding capacity for up to 700,000 people and 260,000 housing units (at 2.7 occupants per household) – Hong Kong’s population and housing needs will be declining.

The fact is the government would achieve its housing targets without building a behemoth in the sea. It has targeted enough existing land for housing, but lacks the political will to secure that land from vested interests. Hong Kong has 2.67 million housing units now, and the government plans to add 460,000 new units in the next decade, for a total of 3.13 million units. This will meet the peak requirement of 2.93 million households in 2044, after which the number of households will decrease.

The Hong Kong 2030+ study acknowledges that with the East Lantau Metropolis, Hong Kong will have the capacity for 9 million-plus residents, whereas the population will peak at 8.22 million. It disingenuously suggests the extra capacity will mean more space for everyone. As many as 700,000 residents on the metropolis’ 1,000 hectares
means a population density of 70,000 per sq km – far denser than Hong Kong’s most congested district, Kwun Tong, which now has 57,250 residents per sq km. Even at  the lowest estimate of 400,000 residents, the metropolis will be 2½ times more congested than Wan Chai’s 15,000 residents per sq km.

The 2030+ study offers another flimsy rationale: the extra capacity allows flexibility in case of an unforeseen 10 per cent rise in population (despite forecasts in the past 15 years predicting a declining trend).

That means the East Lantau Metropolis will be the costliest contingency plan in the world: hundreds of billions spent to provide for an unlikely 10 per cent increase in population. A smarter contingency plan would be to add capacity incrementally around planned development areas in the northern New Territories.

Like any sales pitch, “Hong Kong 2030+” brims with buzzwords – “smart liveable low-carbon”, “synergy effects”, “smart mobility-transport information platform”, and so on. But any serious investor subjecting the East Lantau Metropolis to even a rudimentary business case analysis would consign it to the recycling bin.

No wonder development chief Paul Chan Mo-po is trying to rush this immense project through with little public scrutiny. However, in May, he gave a private showing of a detailed model of the metropolis to Zhang Dejiang, China’s third-ranking state leader and top official in charge of Hong Kong affairs.

Showing Zhang the model, while hiding it from the public, makes it evident that the public consultation on “Hong Kong 2030+”, including the East Lantau Metropolis, is a pro forma exercise. The decision has been made, and public input will not change the outcome.

Tom Yam is a Hong Kong-based management consultant. He holds a doctorate in electrical engineering and an MBA from the Wharton School of the University of Pennsylvania

Buses are the main polluters, not private cars

http://www.scmp.com/comment/letters/article/2041617/letters-editor-october-31-2016

Ariel Kong (“Air filters won’t fix our city’s poor air quality”, October 28) says children need to understand the causes of pollution and “get into the habit of using public transport”. And adds that hopefully when they grow up they will choose not to buy a car and “we will have fewer polluting vehicles on our roads”.

If she would read the Environment Bureau’s March 2013 paper on pollution, “A Clean Air Plan”, she would know that private vehicles account for a tiny fraction of the pollution caused by commercial vehicles and buses, especially the old ones.

On page16, she would see a graphic and the numbers: for particulate pollution, goods vehicles produced 890 tonnes, buses 270 tonnes and private cars just 20 tonnes annually (1.72 per cent of the total for buses plus goods vehicles); for nitrogen oxides, the numbers show goods vehicles produced 36,950 tonnes, buses 9,640 tonnes and private cars just 890 tonnes (1.91 per cent of buses plus goods vehicles).

Overall, buses (about 20,000 of them) produce 11 to 14 times the pollution of the 500,000 private cars in Hong Kong. Buses do carry more people, on average, but commercial vehicles and buses remain the overwhelming source of Hong Kong’s roadside pollution.

That Ariel Kong misses this point shows the success of the transport lobby in obscuring it, and highlights the immorality of their continuing refusal to protect the health of Hongkongers, old and young.

Paul Serfaty, Mid-Levels