As a coastal city with low-lying terrain, Hong Kong is frequently affected by extreme weather events and has experienced multiple climate disasters in the past decades. Two climate risks are particularly concerning: the occurrence of severe typhoons and rising sea levels. In this regard, we focus on how typhoons and sea level rises would affect public housing and conduct scenario analysis on the potential economic losses under different climate pathways. Our analysis shows that the potential damages caused by sea level rise can be more severe, especially in the long run. Under high carbon-emissions pathway, it is also projected that the asset loss due to sea level rise for the three selected public housing estates would be significantly higher than that caused by typhoons.

If climate risks are tackled appropriately, they can be transformed into development opportunities. We propose seven major policy recommendations for Hong Kong to better adapt to climate change: 1) Promote data integration, create a geo-coded platform, to comprehensive climate-risk analysis; 2) Conduct adaptative retrofits for old buildings and infrastructures, and consider sea level rise for new buildings locations; 3) Target vulnerable groups; 4) Improve the climate disaster prediction, warning and response system; 5) Develop the climate catastrophe insurance and reinsurance market; 6) Support early-stage climate-tech companies and application of climate-adaptation technologies; 7) Pay attention to transition risks towards net-zero future.