Hong Kong Action on Climate Change

Actions for Hong Kong

  1. Energy Efficiency in Buildings
  2. Transport Efficiency
  3. Hong Kong Government Response
  4. Business Response

For more information on Hong Kong actions not discussed here please see our section on Solutions

1) Energy Efficiency in Buildings is the key

Buildings in Hong Kong consume about 89% of electricity used territory-wide and are a major source of our greenhouse gas (GHG) emissions. Enhancing energy efficiency in buildings is therefore an area where significant energy savings and reduction in GHG emissions can be made. (Source EPD 2008)

In order to make our buildings more energy efficient it is critical to gain the support not only of developers and landlords but also of architects, planners, engineers, surveyors, contractors, property managers, corporate real estate, researchers and government. Their involvement is crucial not only in the making of the building, but just as importantly in managing them.

 

 

HK BEAM provides a systematic, locally relevant approach to including environmental performance in the planning, design, construction, operation, management and marketing of buildings. It benefits developers, landlords and tenants alike through:

 

  • Cost savings from more efficient use of energy and resources, in both construction and use of buildings
  • Better buildings, which provide healthy and productive accommodation
  • Reduced risk through assurance that best practice management is achieved
  • Effective markets, as companies are able to give assurance of the green credentials of their buildings and tenants and buyers are able to communicate their preferences
  • Regulatory preparedness for both local and international standards.


HK BEAM set up in 2000, is now well established and almost 150 major developments in Hong Kong have received independent certification for high standards of building performance. The scheme has helped encourage innovative design and construction practices and stimulated local supplies of environmentally friendly building materials previously unavailable in Hong Kong, including sustainable timber, low-toxicity paints and ozone-friendly insulation.
Green Buildings in Hong Kong

Three Pacific Place

Three Pacific Place, Swire properties' 34-storey grade A office, reduced construction waste by 15% through effective design modeling.

Equipped with the latest energy efficient building services technology, including a Miconic 10® lift control system and LONWORKS® building control system, the Three Pacific Place has been graded 'excellent' by the Hong Kong building environmental assessment method (HK-BEAM) scheme

By adopting energy-efficiency measures, such as installation of capacitor banks and variable frequency drives, the building operators have realised annual savings in electric bills of about HK$1million, or 8% of annual operational energy costs.

The building has the highest BEAM rating.

Sunny Bay MTR

The Sunny Bay MTR station has no air conditioning, but rather makes use of the natural environment to control the temperature and lighting inside.

The canopy drops the air temperature by two degrees Celsius, which usually is enough to make people feel comfortable. During the day, the translucent material lets light in and at night high-efficiency lighting is used, allowing the station to cut 75 percent from the lighting cost of a typical station in Hong Kong.

Ma Wan School

This BIPV school project- sponsored by Innovation and Technology Fund and CLP Research Institute, explores different PV technologies as integrated building components in Hong Kong's built environment

This installation is the first non-government BIPV system with grid-connection

Average savings of 33,757kWh represents 8.71% of the total electrical energy consumption by the school in the same period

2. Hong Kong's Governments Response

GHG Reduction Measures in Hong Kong (source EPD)
Categories
Measures
a) Electricity Generation
  • Power companies are requested to maximize the use of natural gas for electricity generation
  • Only gas-fired generating units are allowed to be built since 1997.
b) Electricity Demand Side Management
  • Demand Side Management (DSM) Agreements were signed between the Government and the power companies in May 2000 and expired in June 2003.
  • The Government has implemented a wide range of initiatives on energy efficiency and conservation to promote demand side management, including the voluntary energy efficiency labelling schemes, Building Energy Codes and pilot scheme on wider use of water-cooled air conditioning system.
c) Energy Efficiency and Conservation
  • Since 1998, an Energy Efficiency Registration Scheme for Buildings has been launched.
  • All new Government buildings and retrofit projects are required to fully comply with the Building Energy Codes issued by EMSD.
  • A voluntary Energy Efficiency Labelling Scheme for household appliances, office equipment and vehicles has been launched since 1995.
  • Mandatory Implementation of the Building Energy Codes: On 28 December 2007, the Administration launched a three-month public consultation on a proposal to introduce mandatory implementation of the Building Energy Codes (BECs) for certain new and existing buildings, with a view to improving energy efficiency of buildings, alleviating global warming and combating air pollution. It is estimated that for new buildings, implementation of the proposed mandatory scheme will result in energy saving of 2.8 billion kWh in the first decade, which contributes to a reduction in carbon dioxide emissions of 1.96 million tonnes.
  • Legislation for a mandatory Energy Efficiency Labelling Scheme was introduced into the Legislative Council in April 2007. Room air conditioners, refrigerators and compact fluorescent lamps are being included in the initial phase of the mandatory scheme.
  • The Government has taken lead in maintaining the room temperature of air-conditioned government offices at 25.5 oC. Since 2005, the Government has been promoting all air cons to be adjusted to 25.5 o C.
  • Promoting a switch from air-cooled air-conditioning systems to water-cooled ones.
  • The Government has conducted energy audits and re-audits in over 200 major Government venues and set targets to cut down the electricity consumption of the Government by 6% between 2002/03 to 2006/07.
  • In the 2005/06 Policy Address, the Government has further pledged that all Government office buildings should achieve a 1.5% reduction in electricity consumption starting from January 2006.
  • “Hong Kong Energy Efficiency Awards” competition have been launched to encourage energy conservation.
d) Renewable Energy
  • A target of 1-2% of our local power to be met by renewable energies by 2012 was set in the First Sustainable Development Strategy in May 2005.
  • To encourage more usage of renewable energy (RE), the power companies in Hong Kong will enjoy a higher rate of return (11%) for their investment in RE facilities (as compared with 9.99% for other assets). They will also be offered a bonus in the range of 0.01 to 0.05 percentage point in permitted return depending on the extent of RE usage in their electricity generation. Also, grid connection arrangement will be standardised for back up power supply for customers with embedded renewable generation in Hong Kong, subject to technical and reasonable terms. Special cases, such as spill power from embedded renewables and energy-from-waste, will be considered on a case-by-case basis, on reasonable terms. Grid connection/access for RE users/generating facilities using RE will be negotiated between prospective grid users and the respective power company.
e) Transport
  • The Government will continue the efforts to extend the coverage of the public transport system.
  • Encouraging taxis and light buses to switch to liquefied petroleum gas (LPG) to reduce the generation of air pollutants.
  • Up to March 2007, about 100% and 56% of the taxi and public light bus fleets are using LPG.
  • Bio-diesel is a kind of renewable energy. It is estimated that about 128 000 motor vehicles (or 23% of the total number of licensed vehicles) are currently running on fossil diesel in Hong Kong. A wider use of bio-diesel in lieu of fossil diesel is therefore conducive to reducing GHG emissions. In order to promote the use of bio-diesel (which is more costly itself), the Administration has announced in the 2007 Policy Address that the current duty-free arrangement for use of bio-diesel as motor vehicle fuel will become a standing policy. To promote development of the bio-diesel market, the Administration will also draw up specifications on the use of bio-diesel in motor vehicles. They plan to amend the Air Pollution Control (Motor Vehicle Fuel) Regulation (Cap. 311L) to stipulate the relevant specifications with reference to the EU standards. They will begin consultation with relevant stakeholders shortly, including the major oil companies, bio-diesel suppliers, the Motor Traders Association of Hong Kong and transport trades, in preparation for the necessary legislative work. Their intention is to commence implementation of the new regulation in 2009.
f) Landfill Gas Utilization
  • Collecting and utilizing landfill gas from all closed and existing landfills as fuel substitutes and flare the surplus landfill gas.
  • Utilizing landfill gas extracted from the Shuen Wan Landfill as fuel at Towngas (Tai Po) Production Plant.
g) Afforestation
  • Actively implementing afforestation programmes in the territory to increase the capacity of CO absorption.
 
Others
  • Hong Kong Government Consultancy Study on Climate Change: With the recent release of the findings of major international studies on climate change, particularly those published by the IPCC, there is a need to conduct a comprehensive and up-to-date study to assess the likely impacts of climate change on Hong Kong. The study will review and update the inventories of GHG emissions; project the future trends in GHG emissions under different scenarios; characterise the impacts of climate change on Hong Kong; recommend additional policies and measures to reduce GHG emissions and facilitate adaptation to climate change and assess their cost-effectiveness
  • The Chief Executive accepted an invitation from Mr Ken Livingstone, former Mayor of London, for Hong Kong to join the C40 Large Cities Climate Leadership Group (C40). Formed in 2005, C40 aims to promote collaboration amongst cities in the world to reduce GHG emissions and enhance energy efficiency. London, Tokyo, New York, Sydney, Beijing and Shanghai are amongst the participating cities.
  • Alongside some other 20 member economies of the Asia-Pacific Economic Co-operation (APEC), Hong Kong adopted the APEC Leaders’ Declaration on Climate Change, Energy Security and Clean Development announced at the APEC Leaders’ Meeting held in Sydney in September 2007. The Declaration calls upon APEC economies to achieve a reduction in energy intensity of at least 25% by 2030 (with 2005 as the base year). Achieving this goal will avoid emission of approximately 20 million tonnes of GHG every year in 2030.
  • The Administration has established an Inter-departmental Working Group on Climate Change under the lead of Environmental Protection Department.
  • In January 2008, the Finance Committee of Legislative Council approved at its meeting on January 11, $1 billion injection to the Environment and Conservation Fund to boost support and participation of the community on environmental protection and nature conservation. The scope of programmes to be supported under the Fund will be expanded to broaden partnership with different sectors in the community, to enhance community's participation and to encourage cross boundary collaboration in environment and conservation matters.
  • LEGCO’s Finance Committee approved on January 11 2008 funding allocation of $93.06 million to EPD for launching a five-year Cleaner Production Partnership Programme. The Programme aims to encourage and facilitate Hong Kong-owned factories in the Pearl River Delta region to adopt cleaner production technologies and practices so as to reduce emissions and enhance energy efficiency, thereby making a contribution to improve the regional air quality. The Programme will be implemented by the Hong Kong Productivity Council, is planned to be launched in April 2008.

2) Business Response: Case studies

There are a myriad of organisations out there monitoring and assessing the ‘green credentials’ of companies big and small. Below is a selection of companies widely regarded as making a difference.

Wal-Mart

Wal-Mart is one of the leaders in sustainable business, reporting its GHG emissions annually to The Carbon Disclosure Project and launching an annual sustainability report in 2007.

It invests US$ 500 million per annum in energy-saving technologies such as plans to cut energy use at its 7,000+ stores worldwide by 30% and cut GHG emissions at existing stores by 20% in seven years and launched a programme in 2007 to test the use of solar power. They utilise many sustainable technologies including biofuel boilers, wind turbines, radiant floor heating, indirect-evaporative cooling, energy-efficient LED lighting, solar-powered traffic lights and xeriscaping.

Wal-Mart is involved in a number of partnerships from its sustainable value networks which include suppliers and NGOs to technology-based partnerships. For example, the Wal-Mart Sustainable Packaging Value Network aims to reduce the amount of packaging used to deliver products to customers and has begun to market products with a smaller carbon footprint.

But, With a 100,000 mile supply chain with an estimated 220 million tons of emissions directly related to Wal-Mart products, Wal-Mart’s biggest contribution to tackling climate change may be the effect it has up and down its supply chain. Packaging Scorecard, launched in Feb 2007 evaluates Wal-Mart and Sam’s Club suppliers on the sustainability of their packaging and offers suggestions for improvement. Wal-Mart’s Packaging Scorecard was motivated by the positive results the company experienced by reducing the packaging on fewer than 300 toys. Wal-Mart was able to save 3,425 tons of corrugated materials, 1,358 barrels of oil, 5,190 trees, 727 shipping containers and US$ 3.5 million in transportation costs, in just one year with that one initiative.
HSBC

In October 2005 HSBC became the first major bank to become carbon neutral though a three-point programme of reducing emissions, sourcing green electricity and investing in offset projects. For example, they invested US$100 million (£50m) for an initiative to tackle climate change in a five year partnership with the Climate Group, the Earthwatch Institute and the Smithsonian Tropical Research Institute (STRI), and WWF. During 2006 HSBC launched a micro-renewables trial in the UK, installing wind turbines and photovoltaic solar panels at three sites which will save around 500 tonnes of CO2 over their life-time.

Client side, HSBC actively encourages it’s customers to decrease their impact on the environment. In January 2007 they had a Green Sale where for every product bought HSBC donated 2pounds to climate and environmental organisations, raising I million pounds. In 2007, HSBC began its Virtual Forest initiative, during which it will plant a ‘virtual tree’ every time a customer chooses to receive a statement online instead of by post. For every 20 trees planted in the Virtual Forest, HSBC will plant one real tree.

Toyota

Springing from a period of economic difficulty in Japan in the late 1930s, Toyota’s business model has always been based on limiting waste and ‘lean, clean’ manufacturing. The company’s strategy for improving its CO2 performance is based on technological developments, such as the improved fuel efficiency of both diesel and petrol engines and wider use of hybrid technology plus increasing consumer awareness of low emission vehicles through advertising and marketing.

Toyota pioneered the world’s first mass produced petrol/electric car with the Prius. They have also developed Eco-VAS (Eco-Vehicle Assessment System) a valuable environment management tool for those responsible for vehicle development and allow comprehensive assessment at each stage of the development process of the impact of each vehicle on the environment through its life cycle.

Dupont

A pioneer in sustainable business, Dupont was exercising an aggressive corporate energy policy focusing on three areas by the mid-1990’s: maximising energy efficiency; lowering the environmental impact of energy consumption; and renewing the company’s power infrastructure.

As a result, Dupont has reduced its CO2e emissions by 67% since 1990 and a 9% reduction in energy use on pre 1990 levels while increasing production 35% and saving the company $2 billion. DuPont has also helped to start up several external emissions trading programmes, including the Chicago Climate Exchange and the UK Emissions Trading Scheme.

Tesco

Tesco is working towards a ‘revolution in green consumption’. By developing wind-powered stores, using biodiesel delivery trucks, high-tech recycling and energy efficiency labelling, Tesco aims to set an example, measuring and making big cuts in the company’s greenhouse gas emissions around the world.

Last year the company pledged to cut the average energy use in its British buildings in half by 2010 and now it says it will get there two years early.

One major Tesco initiative is State-of-the-art trains that have lower-than-normal noise and pollution reduce the use of trucks, slashing thousands of tons of carbon dioxide emissions. The company also now determines senior-management bonuses partly on meeting energy- and waste-reduction targets.

Tesco is also encouraging customers to be greener by awarding points, redeemable for merchandise, to those who bring their own reusable shopping bags.

MTR

MTR is a founding signatory of the Hong Kong Corporate Social Responsibility Charter and was one of the first companies in Hong Kong to implement an internal policy on climate change. It is committed to providing leadership in CSR practices and promoting the principles of responsibility by managing its environmental impacts. The company considers the lifecycle of its products through a "cradle-to-grave" approach.

Phillips

The Dutch electronics company has a policy of embedding sustainability into its organisation and culture, product design, manufacturing processes and business strategy. Specific sustainability issues addressed include the energy efficiency of buildings, with a goal of zero net energy buildings, energy efficiency and chemical content of products, recycling schemes and lifecycle analysis. In July 2007 Philips launched their global consumer campaign asimpleswitch.com, showing how simple reducing energy consumption can be.

Unilever

The consumer goods giant incorporates environmental sustainability into its overall business strategy. It has pioneered a zero industrial waste policy, initiated a project to develop an approach towards zero-effluent factories and is rolling out globally applicable agricultural practice guidelines. It participates in a project to develop common approaches to sustainability and is implementing a Sustainable Water Initiative.

Lafarge

Since 1990 Lafarge have achieved a 12.75% reduction in CO2 per unit of production and introduced a sector-wide global carbon management plan. Cement production is an energy intensive business, making up as much as 5% of global CO2 emissions. As a large proportion of the emissions and cost in the cement industry comes from the energy consumption used in the heating process, by improving the efficiency this process, Lafarge not only reduced it’s CO2 emissions, but also saved money.

Lafarge has implemented a systematic programme to replace old plants with new ones and, where this is not possible, to upgrade existing sites. They have also started using waste products, such as blast furnace slag from the steel industry and fly ash from coal-fired power stations, both as a supplement to raw materials within the cement and to replace conventional fuels – substituting fossil fuels with biomass at many plants.

In 2000, 3 companies – Lafarge, Holcim and Cimpor established the Cement Sustainability Initiative (CSI) – responsible for creating a sector-wide CO2 accounting method and target regime.


Source: The Climate Group