Another innovative idea that Hong Kong and Guangdong are exploring is the "P2E2" scheme. To help industries in the region upgrade environmentally, firms can now obtain special loans for which the Asian Development Bank assumes the risk -- a program made possible by Hong Kong's sound banking practices.
Another initiative worth watching is the Hong Kong stock exchange's exploratory project offering a trading platform for emissions derivatives, which will most likely include conventional pollutants as well as carbon. The exchange will undertake a study this summer, with trading to begin as early as next year.
If these reforms are not trumped by efforts to maintain high growth at all costs, the region could not only clean itself up while continuing to prosper, but could also establish a model for all of China. Nothing is more necessary for a country that -- according to the UN Development Program -- has 16 of the world's 20 most polluted cities.
Hong Kong's leaders do not want their city to end up on that infamous list. By saving themselves, they may also play an instrumental role in saving China.
Christine Loh is chief executive officer of Civic Exchange, a public policy think tank based in Hong Kong.
Copyright: Project Syndicate
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