Approach on Advancing Net Zero for Buildings in Hong Kong

Ir Dr Vincent ChengArup Fellow, Director of Building SustainabilityArup

29th November 2019

1. Review on progress of HKGBC HK30/30 Initiative

2. Science-based targets as a framework for decarbonization

3. Revisit the strategies for 2030 and beyond

Agenda

3

HK3030 Campaign

HK3030 Campaign Target

• 30% absolute reduction from 2005 level

• Equivalent to 52% reduction from Business as Usual Scenario

Buildings take up over 90% of electricity consumption in Hong Kong and account for more than 60% of the GHG emitted citywide. Hence, building sector has great potential in contributing to the city’s GHG reduction target. HKGBC has launched the HK3030 Campaign, an initiative to focus and coordinate the demand‐side management approach to electricity consumption

4

GHG Emission and Targets

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5

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1990 1995 2000 2005 2010 2015 2020 2025 2030

GHG erm

ission

s [M

tonn

es CO2e

/yr]

EPD Data Projected Data 2 Deg

HK

3030

• HK3030 will reduce carbon emission by 18 MtCO2e/yr

• More than 40% reduction to other emissions related to electricity generation

• Contribute to more than 50% of the carbon reductions required if HK is to do its part in averting catastrophic climate change

2010 Climate Change Strategy and Action Agenda

Consultation

Approximate contribution from HK by 2030 to avoid catastrophic climate change

Remaining contribution from fuel-mix, transportation, waste and other measures

0.00

10.00

20.00

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60.00

70.00

2005 2010 2015 2020 2025 2030

Ener

gy C

onsu

mpt

ion

(GW

h)Building sector annual energy consumption (GWh)

HK3030: Progress Review

30% Reduction

Residential

Commercial

2014

HK3030: Progress Review

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200.00

400.00

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800.00

1000.00

1200.00

Public Housing Private Housing Retail Offices Restaurants Hotels

EUI (

kWh)

Energy Usage Index (EUI) in kWh/m2

2005 2017 2030 Target

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1000.00

1200.00

Public Housing Private Housing Retail Offices Restaurants Hotels

EUI (

kWh)

Energy Usage Index (EUI) in kWh/m2

2005 2017 2030 Target

HK3030: Progress Review

Sectors with increased consumption from 2005-2017

https://www.ipcc.ch/sr15/chapter/spm/

Projected Climate Change

IPCC (2018): limit warming to 1.5°C in 2100 by aiming for net zero in 2040

https://www.hkgbc.org.hk/eng/resources/publications/

Comparison1) ANZ Status Report May 2019: limit warming to 1.5°C by aiming for net zero in 2050

2) HK3030: limit warming to 2°C

Science Based Target | Background

What is Science Based Target (SBT)?Carbon emissions target that is in line with the scale of reductions required to keep global temperature increase to 1.5 °C or well-below 2°C above pre-industrial temperature

An initiative by:

Aligns with UN’s Sustainable Development Goals:Partner organizations:

Science Based Target | Sectorial approach

https://www.enb.gov.hk/sites/default/files/pdf/ClimateActionPlanEng.pdf

Total Energy Consumption by Sector (TJ)

By buildings sectorBy Industry

Science Based Target | Sectoral Decarbonization Approach for Hong Kong

• Base year = 2005 & the private housing base year carbon footprint = 5.3 million ton CO2

1. Calculate each building sector base year carbon footprint

• Private housing GFA in 2005 = 62 million sqm2. Calculate GFAs of each building sector

• Carbon Intensity Ratio for private housing in 2005 = 0.09 ton CO2/sqm3. Calculate Carbon Intensity Ratio of each building sector

• Private housing GFA in 2050 = 78 million sqm (rate of increase from HK Annual Statistics Digest)

4. Forecast growth of GFA of each building sector from base to target

year

• Using IPCC recommended reduction target, private sector’s carbon intensity reduction rate = 3% per year

5. Use ANZ 2050 target to derive Carbon Intensity Reduction Rate

Ex. HK private housing sector

Science Based Target | Sectoral Decarbonization Approach for Hong Kong

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1

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2005 2040 (Target)

Car

bon

Emis

sion

s (m

illio

n to

ns C

O2)

Residential Buildings

Public Housing

Private Housing

Other Housing

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12

2005 2040 (Target)Car

bon

Emis

sion

s (m

illio

n to

ns

CO

2)

Commercial Buildings

Retail

Offices

Restaurants

Accomodation

Health

Other Commercial

Achieving net zero carbon by 2040 in the buildings sector, as calculated with the

Science Based Target approach, will required concerted effort from all building

types

Revisiting the 2014 Roadmap for Deep Energy Reduction

Current Initiatives

Economic drivers

$

$$

$

Environmental and Conservation Fund

GFA Concession scheme Green loan and financing schemes Sustainable Development Fund

Building Energy Efficiency Ordinance (BEEO) and equivalent ordinances

Mandatory Energy Efficiency Labeling Scheme (MEELS)

BEAM Plus assessment system Environmental, Social and Governance

(ESG) Reporting Hang Seng Corporate Sustainability

Index Series Professional trainings and qualifications Public education

Regulatory drivers

Social drivers

BEAM Plus assessment system Building Energy Performance Recognition

Scheme – Office Occupants (BESTOO) and Building Energy Performance Benchmarking Tools for Commercial Buildings of Office and Retail Use in Hong Kong

HKSAR Government leadership HKGBC Green Building Product Listing

Service HKGBC Green Product Labeling Scheme

Environmental drivers

Existing Buildings Strategy

Tackling the existing buildings head-on– Reporting– Retrofitting– Benchmarking– Re-commissioning

Pursuing Energy Disclosure– Synchronization

Leading the movement through regulatory drivers– Building Energy Code– Energy Audit Code

Leveraging the private sector– Green Funds, loans and ESCOs– Carbon Markets

Driving the Transformation | Innovating in New-Construction

Using regulation to improve minimum performance• Building Energy Code• Energy Audit Code• OTTV, RTTV, natural ventilation and others

Developing Hong Kong into an incubator for exemplary design

• Reinforcing BEAM Plus• Implementing a Super Low-Energy Certification

scheme• Providing incentives for innovation

Benchmarking Roadmap

Benchmarking is the pivot point around which the whole action plan turns

Possible enhancements of benchmarking tool:• Automation of data collection – encouraging

automated upload from energy companies• Refining data by enhanced metering – normalising

smart metering and sub-metering

BEC Minimum score

Requires retro-commissioning

Requires retrofitting

BEAM Plus EB pre-req.

BEAM Plus EB Gold

Benchmarking Roadmap

• To provide professional recognition and identify potential measures via “What-If” assessment for promoting energy efficiency in buildings

HK BEST Series:• Office Occupants (HK BESTOO)• Commercial Buildings – Office

and Retail (HK BESTCOM)

Retrofit-commissioning

2019

PLANNING

INVESTIGATION

IMPLEMENTATION

ON-GOING CX

Role & Responsibilities

Analysis data to obtain ESO

Capture Information to plan RCx activities

Implement ESO methods , measure and verify the achievement

Training, keep performance review & looking for more

[Building owner representatives, building manager, O&M staffs, contractors], RCx services providers

Appendix (doc. works) Energy modelling, case sharing, Forms & Reports template

Financing Roadmap and Carbon Trading

Financing the market for efficiency– Green Loans– Green Bonds – Performance Contracts– Green Lease

Driving the market for Carbon/ Energy

– Tax – Rebate– Carbon Trading

• Mandatory CO2 Reduction Program -Report total emissions from all facilities of the same owner/company

• Launched in 2010 by Tokyo ordinance

• 1,200 Facilities (office, commercial & institutional buildings)

• Mandatory verification by a third party institution of annual emissions

27% reduction!

Successful Case – Tokyo Cap & Trade Program

“Decoupled” Energy Consumption

New Buildings Strategies

• Increasingly efficient designs for new buildings – minimum performance

– Building Energy Code– Energy Audit Code– OTTV, RTTV, natural ventilation and

others

• Developing Hong Kong into an incubator for exemplary designs

– BEAM Plus 2.0– Incentives

Beam Plus Roadmap

Enhancing the robustness of BEAM Plus• Greater emphasis on Passive Design• Progressive improvement• Performance verification• Expanding scope

Strengthening the coordination between tools, regulations and assessments• Building energy code and building controls• Using BEST benchmarking in certification• Building GBP and OP process• Integration with Super Low-Energy (SLE)

certification

New Buildings

Existing BuildingsNeighbourhood

Developments

Interiors

Passive D

esign

Performance

Verification

Prog

ress

ive

Impr

ovem

ent

Beam Plus Roadmap

Integration with Super Low-Energy Certification (SLE): Drawing from the case of Singapore

Super Low Energy (SLE) Program launched in 2018 by Singapore’s Building and Construction Authority (BCA). Target 60% Energy efficiency improvement over 2005 building code. Target raised to 80% by 2030.

SLE Improvement over 2005 baseline

Green Mark Improvement over 2005 baseline

Building Energy Code (BEC) Improvement over 2005 baseline

Super low-energy Building Certification Scheme Need for a moving threshold for SLE buildings in Hong Kong

Average EUI in 2019

Average EUI in 2030

Top 10 Percentile “SLE” Buildings

Driving the Transformation | A Focus on People

Enhancing cooperation between landlord and tenants

– Green Leases

Building workforce capacity through professional education

– Measurement, metering and sub-metering

– Re-commissioning– Retrofitting– Green Building Financing

Enabling behaviour change through public education

– Demonstration– Green Tours

© Arup

Decarbanizing Technologies

Renewables• Feed-in-tariffs provide the incentive• Availability promotes wide adoptions • Maga-projects on infrastructures

District Cooling • Widely adopted in New Development Areas • Low carbon community

Smart operation • Digital platform for energy management • IoT and Ai technologies enhance building

performance

Summary

• Current trend on energy consumptions not promising for a sustainable future

• Implementing Science Based Target Methodology for 1.5°C warming

• Developing a super low energy building scheme for Hong Kong

• Taking a more aggressive approach to retro-commissioning and retrofitting

• Building a successful Carbon Cap-And-Trade scheme

• Favorizing additional integration of building-integrated renewables