In addition to courses, one major component of the MPP program is the Client-based Policy Analysis Exercise (PAE), a capstone module. PAE is an eight-month. PAE is an eight-month-long project in which second-year students work in teams of three to five people on challenges, issues, and problems facing real-world organizations. Supervised by faculty members and mentors from client organizations, students will apply the knowledge and skills that they have learned to analyze policy issues, develop solutions and produce professional reports for the client organizations.
The following section summarizes the findings of some PAE reports in the academic year 2021/22.
Developing Intelligent Air Cargo Logistics --- Challenges & Opportunities for Hong Kong
Client: Huawei Technology
Faculty advisor: Prof. Pengyu ZHU
Students: Siyin LIN, Danning HOU, Mingyue DAI, Yijie LIU
Hong Kong is an international air logistics hub due to its strategic location and world-class infrastructure. Nevertheless, major airports in Asian-Pacific increasingly challenge the leading position of the Hong Kong International Airpot as they invest heavily in air cargo logistics. Moreover, valuing passengers over goods leads to underdevelopment in Hong Kong's air cargo logistics.
The first objective of this project is to create a 10-year technology roadmap to help the industry capture innovative technologies applicable to air logistics. The second is to formulate a policy framework to support this roadmap's sustainable development while considering the interests of key stakeholders. Therefore, project team members conducted a series of interviews with key stakeholders, e.g., tech companies, academia, and airline companies. They also studied secondary data sources, e.g., airport reports and journal articles, and implemented desk research on 22 international airports across five continents.
In the short term (1-3 years), the report recommends the Hong Kong government set up special funds for the development of the air-cargo industry, simplify the administrative procedures, and provide corporate tax relief to incentivize innovation. In the medium term (3-5 years), the government could amend existing industry-related regulations and build a cooperation platform for enterprises in Hong Kong and mainland China. In the long term (5-10 years), the government could develop Hong Kong into an international innovation and technology hub, hold airshows regularly to grasp the latest development, strengthen the industry planning guidance and coordination, and attract talent from overseas and Mainland China.
The private sector also plays a critical role. Air cargo logistic companies could control costs and improve efficiency by adopting advanced technologies to raise the level of digitization. On the other hand, technology companies could support the industry by enhancing their R&D capacity and supplying advanced technology solutions.
Pursuing Energy Efficiency on Educational Premises in Hong Kong: A Case Study on ISF Academy Reduction of Energy Consumption
Client: The Independent Schools Foundation Academy
Faculty advisor: Professor Naubahar SHARIF
Students: Junlin LIU, Xin XU, Dongwen ZHENG, Yining WANG, Jiahui LI
The Independent Schools Foundation Academy (ISF) is a non-profit private school offering the IB Middle Years Programme and Diploma Programme in Hong Kong. With a considerable scale, ISF Academy is concerned about high energy consumption. For example, In the academic year between 2018 and 2019, the energy consumption of ISF was 543.8 kWh/m2, while Canadian International School of Hong Kong (CNDIS), a similar school, only consumed 83.7 kWh/m2.
Project members examined the energy consumption pattern of ISF. In the infrastructural aspect, the group discovered that more than 80% of the school's energy consumption was from its heating, ventilation, and air conditioning (HVAC) facilities. Moreover, 244 of its 557 air conditioners were non-inverters that had been used for 12 years. In the institutional aspect, the roles and responsibilities relating to the school's energy consumption were not clearly established and communicated among stakeholders. In addition, the group also identified some abnormal usages of air conditioners during weekends and holidays.
The report recommends a comprehensive energy consumption policy established by the top management team to demonstrate the commitment to reducing energy consumption. The school could also make all stakeholders, e.g., teaching staff, students, cleaning staff, and security guards, aware of their impacts and train them to reduce energy consumption. It is also crucial to install equipment to measure energy consumption detailedly. The top management should review the school's energy consumption quarterly and take appropriate actions.
Furthermore, government bodies, e.g., Environment Bureau, are essential to support the school's participation in energy efficiency policy development and internal and external audits. At the same time, environmental NGOs could provide insightful suggestions regarding energy saving.
Defining Sustainable Finance: Hong Kong's Taxonomy Strategy
Clients: Institute for Public Policy, HKUST; Climate Bonds Initiative
Supervisor: Professor Xun WU
Students: Beijiu CHEN, Yuxuan CUI, Shitong LI, Yue SHEN, Xiting WANG
In 2020, the size of the global green bond market was over 1 trillion USD and green bonds from Hong Kong issuers totaled 2.90 billion USD. It is estimated that 90 trillion USD of investment in sustainable infrastructure will be needed in the coming 15 years to tackle the pressing environmental challenges facing the global community. Yet, the green finance sector in Hong Kong, an international financial center, is still nascent.
The report indicates that one of the key components for developing a sustainable finance sector is green taxonomy. Green taxonomy is a "must-to-have" tool to define "green projects" and reduce transaction costs. It also creates a common language for market participants such as bond issuers, investors, verifiers, and regulators. Many economies attach great importance to sustainable taxonomy. Sustainable taxonomy in some economies, e.g., China and the EU, is already functioning. However, because of the lack of data and knowledge, implementing green taxonomy in Hong Kong faces many challenges, e.g., difficulties in assessing the related technical criteria.
The report suggests that the Hong Kong government could enhance the public awareness of the benefits and successful cases of the CGT, and collaborate closely with the International Platform on Sustainable Finance. On the other hand, the government could strengthen the capacity by clarifying the regulations, improving the data environment, developing necessary professional skills, and incentivizing market participants.
In addition to courses, one major component of the MPP program is the Client-based Policy Analysis Exercise (PAE), a capstone module. PAE is an eight-month. PAE is an eight-month-long project in which second-year students work in teams of three to five people on challenges, issues, and problems facing real-world organizations. Supervised by faculty members and mentors from client organizations, students will apply the knowledge and skills that they have learned to analyze policy issues, develop solutions and produce professional reports for the client organizations.