2018-02-28
[Press Release] Hong Kong Green Building Council’s Response to 2018/19 Budget
Hong Kong, 28 February 2018 – The Hong Kong Green Building Council (HKGBC) welcomes the Financial Secretary’s initiatives in the 2018/19 Budget released today which could promote the green building development and energy efficiency.
“We support the Government’s moves in promoting the use of renewable energy and energy saving devices as well as boosting the green finance market,” said Mr CHEUNG Hau-wai, Chairman of the HKGBC. “The HKGBC always strives to promote the standards and developments of sustainable buildings in Hong Kong and aims to raise green building awareness by engaging the public, the industry and the Government. We believe that the proposed initiatives are beneficial to the green building development of Hong Kong in the long run.”
HKGBC’s further comments on the proposed initiatives are as follows:
I. Energy Efficient and Renewable Energy Installations
The HKGBC welcomes the HK$800 million funding reserved for the installation of renewable energy facilities at government buildings, venues and community facilities. The tax concessions enhancement for capital expenditure incurred by enterprises in procuring eligible energy efficient building installations and renewable energy devices by allowing tax deduction to be claimed in full in one year instead of the current time frame of five years is also positive. In particular, the new tax concession enhancement is a strong financial incentive for more buildings to adopt energy efficiency installations and participate in BEAM Plus assessment, taking one step closer to the Government’s carbon reduction target.
Currently, all types of new and existing buildings / premises achieving “Final Bronze” rating (or “Satisfactory” grade under BEAM Plus Existing Buildings - Selective Scheme - Energy Use) or above under BEAM Plus New Buildings, BEAM Plus Existing Buildings and BEAM Plus Interiors are eligible to profits tax deduction upon registration under the Energy Efficiency Registration Scheme for Buildings (EERSB) administered by the Electrical and Mechanical Services Department (EMSD).
II. Green Bond and Green Finance
The HKGBC supports the introduction of a Green Bond Grant Scheme to subsidise qualified green bond issuers in using the Green Finance Certification Scheme, backing the green bond market as an emerging platform for green development projects to tap funding from the capital market, and hence promoting the overall green building development. In addition, the HKGBC encourages green bond issuers to participate in BEAM Plus assessment for third-party certifications on projects’ environmental performance, which would greatly enhance the attractiveness and stakeholder confidence on green financial instruments.
The HKGBC is anticipating a strong support for the 2018/19 Budget from all stakeholders from the construction industry, professional institutions, green groups, NGOs, community organisations, academia and LegCo members for a concerted effort to build a greener Hong Kong.
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About the Hong Kong Green Building Council (HKGBC)
The Hong Kong Green Building Council Limited (HKGBC) is a non-profit, member led organisation established in 2009 with the vision to help save the planet and improve the wellbeing of the people of Hong Kong by transforming the city into a greener built environment. The Founding Members of the HKGBC include the Construction Industry Council (CIC), the Business Environment Council (BEC), the BEAM Society Limited (BSL) and the Professional Green Building Council (PGBC). Its mission is to lead market transformation by advocating green policies to the Government; introducing green building practices to all stakeholders; setting design, construction and management standards for the building profession; and promoting green living to the people of Hong Kong. To learn more about the HKGBC, please visit www.hkgbc.org.hk.
Press Contacts
Hong Kong Green Building Council Secretariat
“We support the Government’s moves in promoting the use of renewable energy and energy saving devices as well as boosting the green finance market,” said Mr CHEUNG Hau-wai, Chairman of the HKGBC. “The HKGBC always strives to promote the standards and developments of sustainable buildings in Hong Kong and aims to raise green building awareness by engaging the public, the industry and the Government. We believe that the proposed initiatives are beneficial to the green building development of Hong Kong in the long run.”
HKGBC’s further comments on the proposed initiatives are as follows:
I. Energy Efficient and Renewable Energy Installations
The HKGBC welcomes the HK$800 million funding reserved for the installation of renewable energy facilities at government buildings, venues and community facilities. The tax concessions enhancement for capital expenditure incurred by enterprises in procuring eligible energy efficient building installations and renewable energy devices by allowing tax deduction to be claimed in full in one year instead of the current time frame of five years is also positive. In particular, the new tax concession enhancement is a strong financial incentive for more buildings to adopt energy efficiency installations and participate in BEAM Plus assessment, taking one step closer to the Government’s carbon reduction target.
Currently, all types of new and existing buildings / premises achieving “Final Bronze” rating (or “Satisfactory” grade under BEAM Plus Existing Buildings - Selective Scheme - Energy Use) or above under BEAM Plus New Buildings, BEAM Plus Existing Buildings and BEAM Plus Interiors are eligible to profits tax deduction upon registration under the Energy Efficiency Registration Scheme for Buildings (EERSB) administered by the Electrical and Mechanical Services Department (EMSD).
II. Green Bond and Green Finance
The HKGBC supports the introduction of a Green Bond Grant Scheme to subsidise qualified green bond issuers in using the Green Finance Certification Scheme, backing the green bond market as an emerging platform for green development projects to tap funding from the capital market, and hence promoting the overall green building development. In addition, the HKGBC encourages green bond issuers to participate in BEAM Plus assessment for third-party certifications on projects’ environmental performance, which would greatly enhance the attractiveness and stakeholder confidence on green financial instruments.
The HKGBC is anticipating a strong support for the 2018/19 Budget from all stakeholders from the construction industry, professional institutions, green groups, NGOs, community organisations, academia and LegCo members for a concerted effort to build a greener Hong Kong.
###
About the Hong Kong Green Building Council (HKGBC)
The Hong Kong Green Building Council Limited (HKGBC) is a non-profit, member led organisation established in 2009 with the vision to help save the planet and improve the wellbeing of the people of Hong Kong by transforming the city into a greener built environment. The Founding Members of the HKGBC include the Construction Industry Council (CIC), the Business Environment Council (BEC), the BEAM Society Limited (BSL) and the Professional Green Building Council (PGBC). Its mission is to lead market transformation by advocating green policies to the Government; introducing green building practices to all stakeholders; setting design, construction and management standards for the building profession; and promoting green living to the people of Hong Kong. To learn more about the HKGBC, please visit www.hkgbc.org.hk.
Press Contacts
Hong Kong Green Building Council Secretariat
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