A think tank on Thursday said Hong Kong, being an international financial hub, can speed up the development of hydrogen power through financing initiatives that invest in green and sustainable sources of energy.

Civic Exchange made the recommendation in its study of the clean energy source, before the government publishes its strategy on the topic in the first half of 2024 in a bid to de-carbonise the city.

The think tank's research analyst Wing Tsang said the recently released Taxonomy for Sustainable Finance would make it easier for businesses to identify and invest in green hydrogen projects which were completely zero-carbon.

She said the SAR could also learn from South Korea, where green bonds are issued to finance hydrogen infrastructure.

"Hong Kong is an international financial centre, [we] can line up with the banking institutions, the financial institutions, businesses and the government to make the hydrogen transition happen," she told RTHK.

Tsang added the government also needs to address the high costs and insufficient infrastructure of hydrogen energy.

"Hong Kong currently has no secure and stable supply of hydrogen, and we must identify available sources of hydrogen locally and in close proximity to Hong Kong to propel the application of hydrogen."

The think tank also urged authorities to approve more pilot projects to speed up the development and adoption of hydrogen energy in the city.