2026-02-06
HKGBC's Response to 2026-27 Budget Public Consultation
In response to the public consultation exercise for the 2026-27 Budget, the Hong Kong Green Building Council (HKGBC) submitted the following suggestions in tackling the climate change issues and achieving net zero, healthy and resilient buildings in Hong Kong as well as promoting new growth area for green building professional services:
1. Promoting green building assessment tools in Belt and Road (B&R) countries and expanding green building professional services
Hong Kong's strengths in participating in the B&R initiatives lies in its robust international systems, unique legal framework and deep pool of professional talent. The Chief Executive’s 2025 Policy Address states that the Government would set up a B&R Green Development Co-operation Platform (the “Platform”) in Hong Kong and will support local professional organisations, including HKGBC, in promoting green building assessment tools among B&R countries.
We recommend that the Government make strategic use of the Platform to promote Hong Kong’s green building assessment tools and related schemes — such as BEAM Plus, HKGBC Zero-Carbon-Ready Building Certification, HKGBC Net Zero Energy Building Certification, and CIC Green Product Certification. The Platform could also serve to showcase Hong Kong’s professional services, including green building design, green building rating consultancy, and green property management.
To attract more projects outside Hong Kong to adopt Hong Kong’s green building assessment tools and related professional services, we suggest that the Government provide extra subsidies through existing or new schemes. The Professional Services Advancement Support Scheme (PASS) has been instrumental in supporting outreach and exchange activities. Additional funding could be allocated to PASS to enable green building-related professional organisations to conduct capacity-building programmes in B&R regions, helping overseas project teams adopt Hong Kong’s green building assessment tools and related services.
Similarly, additional resources could be allocated to the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) to support local green building-related companies in expanding into the B&R markets through developing brands, upgrading and restructuring operations and promoting sales. Enhancements to the SME Export Marketing Fund (EMF) could also help green building-related SMEs participate in export promotion activities in these regions.
To further strengthen the international promotion of BEAM Plus and other Hong Kong schemes, the Government may consider establishing new funding mechanisms—such as subsidies on application fees for overseas projects adopting Hong Kong’s schemes—to encourage wider uptake.
2. Accelerating carbon reduction in existing buildings through a new building energy labelling framework and innovative financing models
The Chief Executive’s 2025 Policy Address states that the Government would drive the market to accelerate carbon reduction in existing buildings. We recommend the introduction of a new, government-led building energy efficiency label to enhance building owners’ awareness of the current performance levels and future improvement potentials. By clearly indicating a building’s energy performance, the label would motivate owners to invest in energy saving initiatives such as retrofitting and retro-commissioning—critical components of Hong Kong’s decarbonisation pathway.
The label would also improve transparency in the energy performance of existing buildings and serve as a useful reference for prospective buyers or tenants. Over time, it is expected that energy performance ratings would become an integral factor in property valuation, with higher-rated buildings command premium sale and rental prices. The label may also be tied to rates concessions as an incentive to catalyse the building retrofit market. It can additionally underpin outcome-based funding mechanism, whereby funding allocations are directly tied to verified energy-saving performance and carbon-reduction outcomes. Furthermore, it is recommended to introduce low-interest green retrofit loans in collaboration with financial institutions, offering preferential terms for projects that adopt green technologies and obtain green building certification.
We further recommend that the Government promote innovative financing models to support high-cost building improvement and equipment replacement works. Demand for such works is rising due to decarbonisation needs and new global warming potential (GWP) requirements for refrigerants. While government subsidies and utility company-funded schemes are helpful, they should not be the only financing channels.
Energy performance contracting (EPC) is one promising model. It enables owners to overcome financial and technical barriers by using guaranteed future energy savings to fund current upgrades, with risks transferred to specialised Energy Service Companies (ESCOs). This allows organisations to reduce energy consumption and utility costs while meeting sustainability goals without major upfront capital investment.
Energy-as-a-Service (EaaS) is another viable model. Under this subscription-based approach, service providers retain ownership of equipment and deliver the required energy service, providing predictable revenue streams for providers and eliminating upfront capital costs for customer. Examples of EaaS include Cooling-as-a-Service (CaaS) and Solar-as-a-Service (SaaS), both of which are being offered by local utility and private companies.
For large-value capital investments, the Build-Own-Operate-Transfer (BOOT) model may also be adopted. A notable application is chiller plant conversion or replacement projects commonly found in commercial buildings.
3. Mainstreaming green building practices in new development areas, including the Northern Metropolis
Building-related activities account for some 90% of Hong Kong’s electricity consumption and over half of the city’s greenhouse gas emissions. Green-certified buildings therefore play a crucial role in energy savings and climate change. The Government is formulating a Generalised Green Framework for the Planning of New Development Areas (NDAs), which will guide bureaux and departments in their planning and design work. We understand that “Green infrastructure and buildings” is one of the guiding principles within the Framework.
Drawing reference to Kowloon East, we recommend that the Government mandate and/or encourage the adoption of BEAM Plus, Zero-carbon-ready Building Certification and Net Zero Energy Building Certification — recognised under the Hong Kong Taxonomy for Sustainable Finance — in the land sale conditions of NDAs. Such requirement should apply not only at the design stage but also during operation. Land leases could specify that occupied buildings undergo regular re-certification to ensure ongoing green performance.
We further recommend that Government buildings and public housing take the lead in adopting these requirements, serving as exemplars for the private sector. A practical first step would be to revise relevant Government Circular on Green Buildings and the Hong Kong Housing Authority’s internal policies to enable government buildings and public housing estates in NDAs to adopt higher green certification standards. With the Government setting a strong example, the private sector, especially the large developers, are more likely to follow suit.
HKGBC is also actively promoting its “Climate Change Framework for Built Environment” and other relevant guidebooks such as “Guidebook for Sustainable Built Environment”, “Hong Kong Circular Built Environment Guidebook”. These resources support a systematic approach to sustainable, liveable and resilient design. We recommend that the Government incorporate these guidelines in the Generalised Green Framework for the Planning of NDAs, thereby encouraging both public and private sector partners to adopt them to enhance design quality and operational performance.
With these comprehensive measures in place, Hong Kong’s new development areas, including the Northern Metropolis, can become true exemplars of green, healthy and carbon-neutral communities.
4. Integrating Green Technology Uptake into Green Building Policy
With the Policy Address positioning Hong Kong as a demonstration base for green technology, it is timely to introduce measures that incentivise the uptake of green technology in the built environment. Despite the availability of technologies such as smart energy management systems, building-integrated photovoltaics, and AI-driven predictive maintenance, their market adoption remains limited due to split incentives, high upfront capital costs and uncertain payback periods.
To accelerate green technology deployment, it is recommended to embed green technology incentives within green policy. This may include encouraging projects to adopt pre-approved green technologies, particularly those developed locally or validated through Hong Kong-based pilot programmes. It is further suggested to designate urban renewal areas and new development zones as “Green Living Labs”, where partnerships among developers, universities and Greentech startups are actively supported through measures such as land premium adjustments, GFA concessions or expedited approval processes.
Successful uptake of green technologies depends not only on their availability but also on the capacity of designers, contractors and operators to integrate, operate, and maintain them effectively. Capacity building for technology-integration specialisation, together with the development of implementation guidelines and standardised specifications for technology procurement and performance guarantees, are therefore essential.
HKGBC stands ready to support the demonstration, validation, and wider adoption of green technologies in the built environment.
1. Promoting green building assessment tools in Belt and Road (B&R) countries and expanding green building professional services
Hong Kong's strengths in participating in the B&R initiatives lies in its robust international systems, unique legal framework and deep pool of professional talent. The Chief Executive’s 2025 Policy Address states that the Government would set up a B&R Green Development Co-operation Platform (the “Platform”) in Hong Kong and will support local professional organisations, including HKGBC, in promoting green building assessment tools among B&R countries.
We recommend that the Government make strategic use of the Platform to promote Hong Kong’s green building assessment tools and related schemes — such as BEAM Plus, HKGBC Zero-Carbon-Ready Building Certification, HKGBC Net Zero Energy Building Certification, and CIC Green Product Certification. The Platform could also serve to showcase Hong Kong’s professional services, including green building design, green building rating consultancy, and green property management.
To attract more projects outside Hong Kong to adopt Hong Kong’s green building assessment tools and related professional services, we suggest that the Government provide extra subsidies through existing or new schemes. The Professional Services Advancement Support Scheme (PASS) has been instrumental in supporting outreach and exchange activities. Additional funding could be allocated to PASS to enable green building-related professional organisations to conduct capacity-building programmes in B&R regions, helping overseas project teams adopt Hong Kong’s green building assessment tools and related services.
Similarly, additional resources could be allocated to the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) to support local green building-related companies in expanding into the B&R markets through developing brands, upgrading and restructuring operations and promoting sales. Enhancements to the SME Export Marketing Fund (EMF) could also help green building-related SMEs participate in export promotion activities in these regions.
To further strengthen the international promotion of BEAM Plus and other Hong Kong schemes, the Government may consider establishing new funding mechanisms—such as subsidies on application fees for overseas projects adopting Hong Kong’s schemes—to encourage wider uptake.
2. Accelerating carbon reduction in existing buildings through a new building energy labelling framework and innovative financing models
The Chief Executive’s 2025 Policy Address states that the Government would drive the market to accelerate carbon reduction in existing buildings. We recommend the introduction of a new, government-led building energy efficiency label to enhance building owners’ awareness of the current performance levels and future improvement potentials. By clearly indicating a building’s energy performance, the label would motivate owners to invest in energy saving initiatives such as retrofitting and retro-commissioning—critical components of Hong Kong’s decarbonisation pathway.
The label would also improve transparency in the energy performance of existing buildings and serve as a useful reference for prospective buyers or tenants. Over time, it is expected that energy performance ratings would become an integral factor in property valuation, with higher-rated buildings command premium sale and rental prices. The label may also be tied to rates concessions as an incentive to catalyse the building retrofit market. It can additionally underpin outcome-based funding mechanism, whereby funding allocations are directly tied to verified energy-saving performance and carbon-reduction outcomes. Furthermore, it is recommended to introduce low-interest green retrofit loans in collaboration with financial institutions, offering preferential terms for projects that adopt green technologies and obtain green building certification.
We further recommend that the Government promote innovative financing models to support high-cost building improvement and equipment replacement works. Demand for such works is rising due to decarbonisation needs and new global warming potential (GWP) requirements for refrigerants. While government subsidies and utility company-funded schemes are helpful, they should not be the only financing channels.
Energy performance contracting (EPC) is one promising model. It enables owners to overcome financial and technical barriers by using guaranteed future energy savings to fund current upgrades, with risks transferred to specialised Energy Service Companies (ESCOs). This allows organisations to reduce energy consumption and utility costs while meeting sustainability goals without major upfront capital investment.
Energy-as-a-Service (EaaS) is another viable model. Under this subscription-based approach, service providers retain ownership of equipment and deliver the required energy service, providing predictable revenue streams for providers and eliminating upfront capital costs for customer. Examples of EaaS include Cooling-as-a-Service (CaaS) and Solar-as-a-Service (SaaS), both of which are being offered by local utility and private companies.
For large-value capital investments, the Build-Own-Operate-Transfer (BOOT) model may also be adopted. A notable application is chiller plant conversion or replacement projects commonly found in commercial buildings.
3. Mainstreaming green building practices in new development areas, including the Northern Metropolis
Building-related activities account for some 90% of Hong Kong’s electricity consumption and over half of the city’s greenhouse gas emissions. Green-certified buildings therefore play a crucial role in energy savings and climate change. The Government is formulating a Generalised Green Framework for the Planning of New Development Areas (NDAs), which will guide bureaux and departments in their planning and design work. We understand that “Green infrastructure and buildings” is one of the guiding principles within the Framework.
Drawing reference to Kowloon East, we recommend that the Government mandate and/or encourage the adoption of BEAM Plus, Zero-carbon-ready Building Certification and Net Zero Energy Building Certification — recognised under the Hong Kong Taxonomy for Sustainable Finance — in the land sale conditions of NDAs. Such requirement should apply not only at the design stage but also during operation. Land leases could specify that occupied buildings undergo regular re-certification to ensure ongoing green performance.
We further recommend that Government buildings and public housing take the lead in adopting these requirements, serving as exemplars for the private sector. A practical first step would be to revise relevant Government Circular on Green Buildings and the Hong Kong Housing Authority’s internal policies to enable government buildings and public housing estates in NDAs to adopt higher green certification standards. With the Government setting a strong example, the private sector, especially the large developers, are more likely to follow suit.
HKGBC is also actively promoting its “Climate Change Framework for Built Environment” and other relevant guidebooks such as “Guidebook for Sustainable Built Environment”, “Hong Kong Circular Built Environment Guidebook”. These resources support a systematic approach to sustainable, liveable and resilient design. We recommend that the Government incorporate these guidelines in the Generalised Green Framework for the Planning of NDAs, thereby encouraging both public and private sector partners to adopt them to enhance design quality and operational performance.
With these comprehensive measures in place, Hong Kong’s new development areas, including the Northern Metropolis, can become true exemplars of green, healthy and carbon-neutral communities.
4. Integrating Green Technology Uptake into Green Building Policy
With the Policy Address positioning Hong Kong as a demonstration base for green technology, it is timely to introduce measures that incentivise the uptake of green technology in the built environment. Despite the availability of technologies such as smart energy management systems, building-integrated photovoltaics, and AI-driven predictive maintenance, their market adoption remains limited due to split incentives, high upfront capital costs and uncertain payback periods.
To accelerate green technology deployment, it is recommended to embed green technology incentives within green policy. This may include encouraging projects to adopt pre-approved green technologies, particularly those developed locally or validated through Hong Kong-based pilot programmes. It is further suggested to designate urban renewal areas and new development zones as “Green Living Labs”, where partnerships among developers, universities and Greentech startups are actively supported through measures such as land premium adjustments, GFA concessions or expedited approval processes.
Successful uptake of green technologies depends not only on their availability but also on the capacity of designers, contractors and operators to integrate, operate, and maintain them effectively. Capacity building for technology-integration specialisation, together with the development of implementation guidelines and standardised specifications for technology procurement and performance guarantees, are therefore essential.
HKGBC stands ready to support the demonstration, validation, and wider adoption of green technologies in the built environment.