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Space – the final frontier as Hong Kong's buildings go green
Hong Kong’s iconic skyscrapers are having to change with the times, and must play their part in meeting the city’s carbon emissions reduction plans. Space is tight, however, and turning the skyline green is expensive, adding to already high land and construction costs and creating a problem for government and developers.
As part of Hong Kong’s Paris Agreement commitments, the city has pledged to cut carbon emissions by as much as 36% by 2030 (from 2005 levels), and aims to be net-zero before 20501. To meet this ambitious target, green buildings have become one of the main pillars of the government’s Climate Action Plan 20502.
Hong Kong’s buildings are huge energy consumers
It’s easy to see why. In 2019, electricity generation accounted for about 66% of Hong Kong’s carbon emissions3. The city’s buildings consume a huge majority of this electricity , and are responsible for 60% of Hong Kong’s entire greenhouse gas emissions4.
To achieve the Climate Action Plan, it is essential to reduce energy consumption in buildings. The government aims to cut consumption in commercial buildings by between 30%-40% by 2050 (from 2015 levels), and by between 20%-30% in residential buildings. The ambition is to achieve at least half of this reduction by 20355.
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Space restrictions threaten green building supply
However, the city has its work cut out. Hong Kong is hampered by a lack of space on which to build. This limits the options for government and developers looking to deploy renewable energy projects or construct energy efficient buildings. Space restrictions also raise costs for developers buying at land auctions or refurbishing existing properties, even before expensive green technologies and certifications are factored in.
As a result, some in the sector are expecting a supply-demand deficit when it comes to green buildings. For example, a recent report by real estate services company JLL estimates a 68% supply deficit of workplaces with the highest level of sustainability certification between now and 20286. The demand for top-quality, low-carbon workplaces is expected to peak within the next two years, and will outstrip supply more than twofold, the report claims.
Land sales under pressure
High costs have crystallised this year in a record number of failed land tenders7, as the property market downturn, coupled with economic uncertainty, has put off investors and developers.
The government has already reclaimed swathes of land around Hong Kong harbour and other areas, and there are plans to build a floating city off the coast of Lantau Island. However, some of these plans have proved (and are continuing to prove) controversial, with environmental and residents’ groups warning about the ecological damage of such construction work.
Retrofitting is also expensive
Perhaps an even more difficult issue to address is how to retrofit existing buildings with green features (such as more efficient air conditioning and waste management systems, and solar panels), which involves removal and disposal costs, expensive replacement equipment and disruption to business activity.
The number of private buildings aged 50 years or above has surged to 8,600 in the past 10 years, and, as refurbishments take place, areas such as fire safety, lift replacement and drainage repairs tend to be given priority over energy efficiency upgrades8.
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Progress is being made
That said, the city is making progress, with many green buildings having already sprung up in Hong Kong. For example, One Taikoo Place, situated in Quarry Bay, a satellite business district close to the centre, boasts serious green credentials.
Over 75% of the demolition waste was recycled, along with 60% of the construction waste. The building employs energy savings measures throughout, including daylight and motion sensors for lighting controls, achieves over 50% potable water savings through more efficient fitments, and has electric vehicle chargers throughout the car park.9
To encourage change, the government is offering a number of incentives to businesses and the public to help make existing buildings cleaner and more energy efficient. For example, under the FiT Scheme, members of the public and non-governmental organisations who have installed solar photovoltaic (PV) or wind energy generation systems at their premises can sell the renewable energy generated to power companies at a rate higher than the electricity tariff.
Despite this, the government expects solar energy to only meet around 1% to 2% of Hong Kong’s electricity demand by 203510. If Hong Kong is to hit its ambitious targets, more must be done.
More private investment is needed
Although the government owns many buildings and land parcels in the city, private investment (and private investors) will increasingly be needed to produce more green buildings and reduce the city’s carbon footprint. There have already been calls for this from some in the construction and real estate industry11. At the same time the government can push through land reclamations and take action to reduce land costs, while offering incentives to developers to deliver the most energy efficient buildings.
Public-private partnerships can draw on these strands to continue Hong Kong’s transformation from Asia’s World City into Asia’s Green City. With the population expected to rise to at least 8.19 million by 204612, space for green building will become tighter still. For Hong Kong’s sustainability transformation, time is of the essence.
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1 Hong Kong 2050 is Now (hk2050isnow.org)
2 Hong Kong’s Climate Action Plan 2050. (cnsd.gov.hk)
3 Hong Kong’s Climate Action Plan 2050. (cnsd.gov.hk)
4 Decarbonising Hong Kong Buildings: Policy Recommendations and Next Steps. (hkgreenfinance.org).
5 Hong Kong’s Climate Action Plan 2050. (cnsd.gov.hk)
6 The impending green divide: Supply deficit of sustainable workplaces in Asia Pacific. (jll.com.my)
7 Hong Kong Property Slump Sinks a Record Number of Land Tenders. (Bloomberg)
8 Environmental performance of old buildings needs to be improved. (ejinsight.com)
9 One Taikoo Place BEAM Plus Online Exhibition (greenbuilding.hkgbc.org.hk)
10 Hong Kong’s Climate Action Plan 2050. (cnsd.gov.hk)
11 Green buildings: public-private partnerships and technology key for slashing carbon footprints, sustainability experts say. (SCMP)
12 Hong Kong population projections for 2022-2046. (censtatd.gov.hk)
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