LEGCO WORK

Motion on “Enacting dedicated laws and regulations to regulate greenwashing”2024.06.27)

Thank you, President. In recent years, public awareness of environmental protection has gradually increased. Green economy has become an important trend for industries around the world. However, greenwashing behaviour of enterprises has also become increasingly common, in that they would publicize the environmental benefits of their products or services in false, exaggerated or unsubstantiated manners, so as to enhance their corporate image and attract consumers to choose their products. Simply put, it is “fake environmental protection”.

I speak in support of the motion proposed by Mr CHAN Chun-ying. Enacting dedicated laws and regulations can effectively regulate and punish greenwashing behaviour, thereby ensuring the sustainable and healthy development of green economy in Hong Kong.

Examples of corporate greenwashing can be found everywhere. Let me cite a few simple examples. More and more food or clothing products are labelled as “natural” or “eco-friendly”, but actually, they are not supported by specific elaboration or evidence. Some restaurants claim that their plastic cups and plastic bowls are “degradable plastic” products, giving consumers the wrong impression that those products are more environmentally friendly, but in fact, Hong Kong currently does not have suitable facilities or conditions to decompose such plastics. Enterprises suspected of greenwashing would usually make a fanfare to stress how their brand is concerned about environmental protection, which mainly aims to go in line with consumers’ concern for environmental protection in an attempt to shape a positive corporate image.

In January this year, the European Parliament adopted the Directive on Empowering Consumers for the Green Transition, which will come into force in 2026. It strictly prohibits enterprises from making vague and generic claims with terms such as “environmentally friendly”, “natural”, “biodegradable” and “eco-friendly”, and bans the use of carbon credits obtained under carbon offsetting schemes to claim that a product is carbon neutral or low-carbon, thus clearly regulating greenwashing behaviour to protect consumer interests. Apart from the European Union, other countries also have plans to enact legislation on greenwashing, such as the Environmental Claims and Greenwashing of Canada, the Environmental Technology and Industry Support Act of Korea, and the Green Claims Code of the United Kingdom. Last year, the United States also proposed to revise the Green Guides, so that enterprises would have a clearer idea of how to achieve compliance, and the Government would have a better basis for enforcement. It is thus evident that strengthening the regulation of corporate greenwashing is the general trend, and it is also necessary to do so.

At present, Hong Kong does not have any dedicated laws and regulations against greenwashing and mainly relies on the Trade Descriptions Ordinance to exercise regulation. Currently, there is a wide array of industries involved in greenwashing, ranging from retail, automobile to finance. Therefore, the Government should explicitly define the scope of greenwashing behaviour, determine what kind of publicity tactics will be regarded as false and unsubstantiated, and distinguish greenwashing behaviour from genuine practices of environmental protection, so as to monitor different forms of greenwashing. At the same time, the Government should also formulate punitive measures to impose severe punishment such as high fines against greenwashing behaviour, so as to ensure that offenders shall pay the price accordingly. In this way, enterprises will be more cautious about their environmental advocacy and ensure that their environmental contributions are backed up by concrete evidence, thus making it easier for consumers to identify truly eco-friendly enterprises.

International anti-greenwashing policies are constantly improving. They are worthy of our learning and reference. The enactment of dedicated laws and regulations to regulate greenwashing is of great importance to the promotion of the healthy development of Hong Kong’s green economy. It can resolve the excessive ambiguity of green labels of products which may easily confuse consumers. At the same time, it can provide enterprises with clear criteria on product publicity, eliminate grey areas and prevent them from breaching the law inadvertently. Through enhanced publicity and education, public awareness and understanding of environmental issues can be raised to prevent consumers from being misled by false information when choosing products.

Thank you, President.

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