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Decarbonising Hong Kong Buildings Policy Recommendations and Next Steps

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Decarbonising Hong Kong Buildings Policy Recommendations and Next Steps Decarbonising Hong Kong Buildings Policy Recommendations and Next Steps December 2020 Acknowledgements Disclaimer This publication is a collaboration between Hong The information provided in the Decarbonising Kong 2050 Is Now and the Greater Bay Area Hong Kong Buildings: Policy Recommendations Green Finance Alliance (GBA-GFA). and Next Steps (the “study”) including but not limited to all text, figures, diagrams and We would like to express our gratitude to compilation of data or other information, is colleagues who provided timely and helpful for general reference and indicative purposes advice, support and assistance during the only. While adequate care has been taken to preparation of this publication. Special ensure the accuracy of the information/services thanks goes to the following individuals and provided, neither the publisher nor any of their organisations for providing input and reviewing personnel shall in any circumstance be liable for draft versions of this document: any loss or damage caused by a reader’s reliance on information obtained from the study. The Lisa Genasci ADM Capital Foundation study has incorporated the requirements of the Grace Kwok Allied Environmental publisher. Consultants Limited Leo Chan BEAM Society Limited Copyright Caterina Choi BEAM Society Limited No reproduction or reprint of any part of the Ir CS Ho BEAM Society Limited contents is allowed for commercial or non- Sandy Li CECEP Environmental profit making applications without prior written Consulting Group Limited authorisation from Civic Exchange. (CECEPEC) Flora Yu CECEP Environmental Consulting Group Limited (CECEPEC) J Robert Gibson Civic Exchange Lawrence Iu Civic Exchange Ir Dr Cary Chan Hong Kong Green Building Council Limited (HKGBC) Dr Ma Jun Hong Kong Green Finance Association (HKGFA) We are grateful to Joyce Lau and DESIGNORM for providing editing, administrative and design support. Funding from the RS Group made this study possible and we are most grateful. likely to reach 1.5 degrees Celsius above pre-industrial levels, About Civic Exchange with potentially significant and dangerous consequences for Civic Exchange is an independent Hong Kong public-policy think the world. We believe that a decarbonised city is people- tank established in 2000 with a vision to shape a liveable and centric, more liveable, healthier and successful. That’s what sustainable Hong Kong. Its mission is to engage society and we want for Hong Kong. influence public policy through in-depth research, dialogue, and the development of practical solutions. With research covering four areas — environmental, economic, social, and governance — Civic Exchange has been ranked among the top 50 environmental think tanks in the world by the Lauder ABOUT ARUP Institute at the University of Pennsylvania since 2011. Sustainability is at the heart of Arup’s work. The firm has made a commitment to be a net zero organisation by 2030 and will achieve this by pursuing an ambitious 1.5 degrees Celsius-aligned science-based target for its full value chain emissions and compensating residual hard-to-decarbonise ABOUT THE HONG KONG emissions with certified greenhouse gas removal. Arup is GREEN FINANCE ASSOCIATION experienced in delivering exemplar sustainable projects Founded in September 2018, the Hong Kong Green Finance worldwide, and its influence can be felt throughout Hong Association (HKGFA) is a platform that offers channels and Kong’s world-class infrastructure. It has always aimed to opportunities to facilitate the development of green finance deliver innovative, feasible and comprehensive sustainable and sustainable investments in Hong Kong and beyond. It design strategies and solutions to achieve environmental aims to mobilise public- and private-sector resources and integrity, economic viability, social welfare and efficient talents in developing green finance policies, to promote resource utilisation. With vast project experience in business and product innovation within financial institutions. integrating environmental, economic and social factors, HKGFA’s main goal is to position Hong Kong as a leading Arup’s multidisciplinary team provides innovative, data- international green finance hub by providing greater access driven and sustainable solutions to clients, contributing to and opportunities for Hong Kong’s financial institutions the United Nations Sustainable Development Goals. to participate in green financing transactions locally, in mainland China, and in markets along the Belt & Road Initiative. This is in line with the global trend of implementing the UN sustainable development goals and the Paris ABOUT THE AUTHORS Agreement. Currently, the Association has members of over Tracy Wong Harris is a consultant with Civic Exchange and 100 financial institutions, companies, service providers and the Deputy Secretary General of the Hong Kong Green other key stakeholders. Finance Association (HKGFA). Contact: [email protected] Ir Dr Vincent Cheng is an Arup Fellow and Director of ABOUT THE GREATER BAY AREA Sustainability. Contact: [email protected] Ir Dr Bruce Chong is a Director of Urban Sustainability at GREEN FINANCE ALLIANCE Arup. Contact: [email protected] The Greater Bay Area Green Finance Alliance (GBA-GFA) Ir Samantha Kong is a Senior Engineer in the Sustainability is a collaboration between the Hong Kong Green Finance Group at Arup. Contact: [email protected] Association (HKGFA), the Green Finance Committee of the Guangdong Society for Finance and Banking (GDGFC), the Ir Justin Cheung is a Consultant of Policy and Sustainability Green Finance Committee of the Financial Society of the at Arup. Contact: [email protected] Shenzhen Special Economic Zone (SZGFC), and the Macau Ariel Mak is an Assistant Consultant of Planning at Arup. Association of Banks. The Alliance aims to promote research Contact: [email protected] and to incubate green investments that will benefit the GBA by leveraging the vast green investment demand in Guangdong David Lickfold is an Engineer in the Sustainability Group at and green finance capacities in Hong Kong and Macau. Arup. Contact: [email protected] Olivia Ku is a Research Assistant in the Sustainability Group at Arup. Contact: [email protected] ABOUT HONG KONG 2050 IS NOW Hong Kong 2050 Is Now galvanises collective action in science, media, business and policy, in efforts towards a carbon-neutral Hong Kong by 2050. This initiative by Civic Exchange, the World Resources Institute, and the ADM Capital Foundation aims to build a broad-based collective platform for driving action in Hong Kong in response to the 2018 Intergovernmental Panel on Climate Change (IPCC) report on “Global Warming of 1.5°C”. According to that report, without urgent, large-scale action, global warming is CONTENTS Executive Summary ...................................................................................................... 1 1 Introduction .................................................................................................................. 6 1.1 Decarbonising Hong Kong by 2050 ..................................................................... 6 1.2 Study Scope ......................................................................................................... 7 1.3 Aims and Objectives ............................................................................................ 8 2 Decarbonising the Building Sector .............................................................................. 9 2.1 Sources of Carbon in the Building Cycle .............................................................. 9 2.2 Opportunities for Decarbonisation ................................................................... 15 3 Hong Kong Review - Existing Regulations and Subsidies ........................................ 16 3.1 Building Energy Regulations .............................................................................. 16 3.2 Energy Efficiency (Labelling of Products) Ordinance ........................................ 30 4 Hong Kong Review - Policies and Incentives ............................................................ 33 4.1 Major Incentives ................................................................................................ 33 4.2 Voluntary Recognition Schemes ....................................................................... 39 4.3 Embodied Carbon Measures ............................................................................. 46 4.4 Other Schemes ...................................................................................................51 5 International Review ...................................................................................................61 5.1 Singapore ............................................................................................................61 5.2 Shenzhen ........................................................................................................... 87 5.3 United Kingdom ............................................................................................... 101 5.4 European Union ............................................................................................... 115 5.5 Australia ........................................................................................................... 121 5.6 Influence of Other Sectors .............................................................................. 125 5.7 Corporate Reporting Standards .....................................................................
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