Hong Kong proposes law to transfer HK$4.1bn from environment fund to government coffers
Hong Kong's government has introduced a bill to amend the Environment and Conservation Fund Ordinance, allowing the transfer of HK$4.1 billion from the fund to general revenue. The move aims to consolidate fiscal resources while retaining HK$2.1 billion for the fund's operations over five years.
The Hong Kong government has tabled the Environment and Conservation Fund (Amendment) Bill 2026 in the Legislative Council, seeking to transfer HK$4.1 billion from the fund to government revenue. Financial Secretary Paul Chan proposed the amendment, which is part of broader efforts to consolidate and better use fiscal resources.
The bill follows a review of 42 statutory funds held outside government accounts, as outlined in the 2025-26 Budget. In August 2025, the government already transferred HK$61.5 billion from six large seed funds. Now, the 2026-27 Budget proposes recovering about HK$15.8 billion from seven funds, including the Environment and Conservation Fund.
Established under the Environment and Conservation Fund Ordinance, the fund operates as a trust to support environmental education, research and related work. As of the end of March 2026, the fund held a balance of approximately HK$6.2 billion. Over the past three years, average annual spending was about HK$230 million.
Under the proposal, HK$2.1 billion will be retained to cover the fund's needs for the next five years, while HK$4.1 billion will be transferred to the government's general revenue. The fund's policy objectives, operational model and management arrangements will remain unchanged. The Environment and Ecology Bureau consulted the fund's committee in March 2026 on the revised financial arrangements.
Because the current ordinance lacks provisions for transferring surplus balances to government revenue, the bill introduces new clauses empowering the Financial Secretary to transfer part of the fund's balance if it is not reasonably required for the fund's purposes. The Financial Secretary may consider factors such as cash flow needs and accumulated investment income. The bill explicitly states that transferred amounts will not include donations received by the fund or income derived from such donations.
The government plans to seek approval from the Legislative Council's Finance Committee for the transfer arrangement after the bill is passed.