Business Environment Council (“BEC”) hosted a report launch event today at BEC Auditorium, unveiling its latest research findings on biodiesel and renewable diesel in Hong Kong. The event attracted over 100 attendees, including government officials, industry experts, business leaders, and environmental advocates.
The research studied the potential of both biodiesel and renewable diesel. Renewable diesel (“RD”), also known as Hydrotreated Vegetable Oil (“HVO”), is a second-generation biofuel that can be used as a “drop-in” fuel in regular diesel engines without requiring any engine modifications. This fuel offers a significant reduction in carbon emissions — by up to 90% compared to regular diesel — and is increasingly being adopted globally as a key transitional strategy in decarbonising transportation and heavy industry.
The research, conducted between September 2024 and February 2025, delved deep into the demand-side landscape for these fuels. It found significant corporate interest in renewable diesel as a viable option to decarbonise hard-to-abate sectors; however, the research also identified major challenges in scaling its use. These include limited accessibility, a need for greater transparency in product information and awareness, as well as gaps in the current regulatory framework.
To address these issues, it is recommended that suppliers should improve information availability through detailed product data and awareness campaigns, particularly to educate on renewable diesel's benefits and compatibility. Enhancing accessibility by establishing new fuel stations and offering mobile solutions is also essential.
Furthermore, the Government is advised to update regulations to align local renewable diesel standards with latest international benchmarks like International Sustainability and Carbon Certification (“ISCC”) and European Union (“EU”), while fostering interdepartmental collaboration to recognise renewable diesel for on-road use. Incorporating biofuels into Hong Kong’s climate transition plans, including considering a higher blends mandate and establishing disclosure criteria for traceability and third-party verification, is also crucial for promoting renewable diesel and biodiesel.
Mr Simon Ng, Chief Executive Officer of BEC, remarked, “This research has underscored BEC’s commitment to advancing greener fuel options and realising a sustainable energy future for Hong Kong. It provides us with a clear understanding of the local market landscape, importantly highlighting the readiness within key business sectors for effective solutions like renewable diesel, and allows us to benchmark against global standards. By addressing the barriers identified and proposing actionable recommendations to enhance the adoption of renewable diesel and biodiesel, we can make significant strides toward achieving Hong Kong’s decarbonisation goals.”
Ms Anne Yu, Managing Director of Shell Hong Kong Limited, said, “We are pleased to have supported this research, which delivers invaluable insights into corporate demand and consumer perspectives, highlighting a clear interest in adopting renewable diesel and biodiesel, particularly for challenging industrial applications. The findings present a clear opportunity for us to innovate and take decisive actions that will benefit both our customers and the environment. As we navigate the energy transition, Shell continues to explore ways of access to renewable fuels and increasing awareness of their benefits. Addressing gaps in product availability and education is essential to unlocking their full potential. Through these efforts, we aim to support a more sustainable energy system — delivering more value with less emissions.”
Following the research, BEC will continue to foster collaborations among government entities, industry players, and stakeholders to advance the adoption of renewable diesel and biodiesel in Hong Kong. By facilitating meaningful dialogues, BEC aims to address the identified challenges while laying a solid foundation for a sustainable energy future, ensuring the transition to renewable fuels is both effective and impactful for the community and the environment.
The full report is available on BEC website.
Mr Simon Ng, CEO of BEC, delivers the welcome remarks,
setting the stage for a productive discussion on renewable fuels
Ms Anne Yu, Managing Director of Shell Hong Kong, presents the opening remarks,
emphasising the importance of collaboration in advancing renewable diesel adoption
Speakers explore innovative solutions and sharing insights on the future of
renewable diesel and biodiesel in Hong Kong during the panel discussion