"Climate change risk has not been adequately addressed by the authorities or businesses in Hong Kong, Macau and the Pearl River Delta (PRD industrial zone)," said Christine Loh, Civic Exchange chief executive. "This report is a wake-up call: the PRD is going to feel the effects of climate change; and we have to start planning for it now."

Hong Kong has in the past few years found itself at the sharp end of China's economic boom, as smog and fumes produced by the industrialised PRD wafts over to the city, raising pollution to dangerous levels.

While the increasing smog has caused a rise in health problems -- particularly respiratory illnesses -- the city is also beginning to feel the effects where it hurts most; in its wallet.

Companies are refusing to invest or locate here because of concerns they won't be able to tempt the best quality staff to the smoggy city. Banking giant Merrill Lynch has downgraded its ratings on several big local companies for that reason.

Major chambers of commerce have also called for more action from governments on both sides of the border.

While each administration has made the right noises about working together on the issue, there has so far been no tangible outcome.

Civic Exchange said the results of climate change would be apparent in this generation's lifetime.

"The scientific evidence suggests that sea levels along the coastline here will rise by at least 30 centimetres by 2030," said Alexandra Tracy, lead author of the report.

"This may seem a small change, but, in conjunction with storm surge and inadequate coastal defences, it could lead to flooding and significant damage to infrastructure in the region."

earlier related report
Businesses Snub Hong Kong Clean Air Plan
Hong Kong (AFP) Nov 26 - Hong Kong's businesses are snubbing an initiative to help ease the city's worsening air pollution, a report said Sunday, amid reports that chronic smog is hurting business and health.

Just 100 Hong Kong companies out of tens of thousands have signed up to a protocol aimed at cutting emissions from smoke-belching factories in southern China.

Most of Hong Kong's pollution comes from the region's heavily industrialised southern Pearl River Delta and most of those are owned by companies based in the wealthy former British colony.

The initiative put forward by the local General Chamber of Commerce compels signatories to adopt international emissions standards -- which are much lower than the often antiquated factories and power plants of China are capable of matching.

The move had been backed by the government here as a step towards combating pollution, which has become a highly emotive political issue as air quality has worsened in the past few years.

But a chamber source told the Sunday Morning Post newspaper that companies had shown little interest.

"We are disappointed by the cool response," the source was quoted as saying.

"When we are talking about how to clean up the sky, many companies and big bosses do not even bother to sign a piece of paper," the source added. "There is a lack of social responsibility among the business sector."

The report said the revelations were likely to embarrass to political leader Donald Tsang, whose government claims to be doing all it can to battle pollution.

His reputation is likely to be further harmed by the fact that many of his government ministers are among factory owners who have not signed up, the report said.

Smog is an almost daily nuisance in Hong Kong, as pollutants from factories and power stations in China's industrial hinterland mix with the fumes of the region's growing fleet of vehicles and wafts into the city on prevailing winds.

Government estimates said that more than 50 days last year suffered visibility of lower than a kilometre as a result of the smog.

Environmentalists say that figure is too conservative and cite tests at the airport which found smog reduced visibility on more than 100 days of the year.

Such is the concern over pollution that many business groups and even a senior government cabinet member have joined environmentalists to warn that it is not only bad for the city's health but also bad for business.

Ronald Arculli, a member of the government's core cabinet, last week said the poor air was deterring foreign businesses from setting up shop here because they could not find executives willing to settle in such unhealthy conditions.

The tourism industry has also warned the air is causing concern among visitors.

Despite government pledges to tackle the problem in tandem with authorities in China, there is a perception that Hong Kong is too weak to make a difference with Chinese leaders unwilling to do anything that may stall its economic expansion.

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