Green Buildings and Energy management Conference

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1 Green Buildings and Energy management Conference HKU MSc ENVM EMAHK BSOMES 8 April 2017 Ir. Cary Chan Executive Director Hong Kong Green Building Council

2 Back to the 90s.. Environmental consciousness (society and industry) Awareness Knowledge Behavior Regulations Positive and negative drivers Green Building professionals Technology and product Demand to the building industry Demand on indoor environmental quality

3 Development of the Green Building Movement HK-BEAM was Launched Lincoln House First HK-BEAM New Buildings Project (Excellent Rating) HSBC Headquarters First HK-BEAM Existing Buildings Project (Excellent Rating) 1989 Montreal Protocol was launched Earth Summit 1998 was launched

4 Development of the Green Building Movement Fresh Water Plumbing Quality Maintenance Recognition Scheme IAQ Certification Scheme was launched BEAM for New & Existing Buildings (Version 4/04 & 5/04) were launched was established was launched was launched 1 st Green Building Masterplan

5 Development of the Green Building Movement Quality Water Supply for Buildings Carbon audit for buildings HKGBC was established BEAM Plus New & Existing Buildings (NB, EB) V1.1 were launched PNAP APP-152 Sustainable Building Design Guidelines PNAP APP-151 Building Design to Foster a Quality and Sustainable Built Environment Climate Change Act (UK) China Green Building Label (Three Star) was launched LEED 2009 & BREEAM International 2 nd Green Building Masterplan

6 Development of the Green Building Movement Holiday Inn Express Hong Kong Soho First BEAM Plus NB Hotel Project Building Energy Efficiency Ordinance BEAM Plus NB, EB V1.2 were launched Green School Guide were launched Hysan Place First BEAM Plus NB Commercial Project A Clean Air Plan for Hong Kong BEAM Plus Interiors (BI) V1.0 was launched Hong Kong Blueprint for Sustainable Use of Resources Subsidy on Three Star green buildings in China, as prescribed by China's 12th five-year plan

7 Development of the Green Building Movement MARINELLA First BEAM Plus NB Residential Project Energizing Kowloon East Office First BEAM Plus NB Government Project Green Tenancy Driver was launched Green Shop Guide was launched A Food Waste & Yard Waste Plan for Hong Kong rd Green Building Masterplan

8 Development of the Green Building Movement ZCB BEAM Plus NB Platinum ZCB Eco-Home First BEAM Plus BI project Total Gross Floor Area (GFA) of BEAM Plus registered projects exceeded 200,000,000 sq. ft Energy Saving Plan for Hong Kong s Built Environment Hong Kong Climate Change Report 2015 Building Energy Code (BEC) COP21 held in Paris

9 Development of the Green Building Movement BEAM Plus EB V2.0 was launched BEAM Plus ND was launched Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030 Hong Kong Biodiversity Strategy and Action Plan Climate Action Plan Paris Agreement was rectified

10 Development of the Green Building Movement BEAM Plus NB V2.0 will be launched WSBE17 Conference Policy Address 2017 proposed to raise prerequisite for application for GFA concession 2017 President Trump dismantles Obama climate change policies

11 The Growth of GB Movement THEN NOW Government policy & strategy Full spectrum of stakeholders Must have for incentives Developer driven Voluntary Nice to have

12 BEAM Plus: Current update registered projects (till now) (Data as of 1 Mar 2017)

13 BEAM Plus: Current update Bronze 18% Platinum 24% Silver 21% certified projects (NB, EB, BI) Gold 37% (Data as of 1 Mar 2017)

14 BEAM Plus: Current update Average water saving: Average energy saving: Average greenery ratio: 39% 29% 39%

15 BEAM Plus: Current update Water saved equals to consumption of 31,600 households Electricity reduction equals to consumption of 97,900 households Total area of soft landscaping: 73 Hong Kong Stadium Pitch

16 Driving forces

17 Drivers for change: Political Human development since industrialization A balanced ecosystem Human activities disrupt ecosystem COP 21 Drivers for change: 1. Political 2. Regulations 3. Market 4. Society Social/ Economic/ Political impact on our society Photo source: Guardian News Barack Obama listed climate change among the top three priorities of his second term UK Guardian News, 09 Jan 2013 Photo source: The Telegraph China committed about $290 billion to clean energy investments in 12 th five year plan Business Week, 21 Nov 2012

18 Drivers for change: Regulations (Local) Setting target Bench marking Capability building Consumption disclosure Financial incentive / disincentive

19 Drivers for change: The Market Carbon trading Building/Product labelling Market sustainability indices EU Emission Trading System

20 Drivers for change: The Society Green groups Social media Public concerns Corporate CSR policies Photo source: protest nuclear po 15266

21 Inter-relationship between drivers NGOs Tenants International practices Green Performance Government Media Internal budget holders Public awareness Industry Green professionals Developers Market Community

22 Limitations of Green Building Assessment tools Future driving forces Knowledge and experience of the industry Technologies.

23 Considering Eco Cost Natural Capital Eco Cost Financial Cost Eco Cost Financial Cost Prevention Mitigation Remediation Sustainable Growth Capitalism GDP Growth Consumerism Profit Maximization Business Case

24 What is Eco Cost? to prevent, mitigate or remediate the burden caused to Natural Capital DEFINITION Eco cost is a measure to express the amount of environmental burden of a product on the basis of prevention of that burden. This is the cost which should be made to reduce the environmental pollution and materials depletion in our world to a level which is in line with the carrying capacity of our earth. Source: Delft University of Technology Resource Depletion Global Warming Environmental Pollution Human Health

25 Eco Cost of Electricity (per kwh) $3.01/kWh ($1.89/kWh + $1.12/kWh) Source: Delft University of Technology

26 A Change in Decision Making? = Financial Cost Eco Cost Total Cost Electricity Wind Turbine How much will you invest in wind turbine?

27 TOTAL COST Paid by Society Paid by Pollutor Financial Cost Eco Cost Financial Cost Eco Cost Financial Cost Eco Cost Financial Cost By applying Pollutor Pay Concept, Eco cost is reflected in financial cost via Carbon tax Eco tax Cap and Trade Trade effluent surcharge Plastic bag charge Fine for exceeding emission standard TIME

28 Swire Properties: Eco-cost breakdown of Swire Hostel Total Eco-cost of Hostel: 60M Total Financial Cost of Hostel: 180M Human health impact (pollutant) 3.8% Resource (fossil, water, materials w/ %5 recycle content ) 39.9% Ecosystem impact (pollutant) 4.2% Land used conservation 0.9% GHG (CO2e generation) 51.3% Supply chain of external partners ($40M) Source: Delft University of Technology Land used conservation 0.2% Ecosystem impact (pollutant) 29.1% Human health impact (pollutant) 43.5% GHG (CO2e generation) 11.1% Construction & Demolition process ($8.4M) Resource (material, water, fossil) depletion Human health impact (respiration disease, toxicity to human) Ecosystem impact (toxicity to river, marine & land) Land use conversion (land & river depletion) Green house gas (temperature rise) Human health Resource impact (fossil, water, (pollutant) materials w/ 5.6% %5 recycle content ) 16.0% Ecosystem impact (pollutant) 11.0% Land used conservation 0.1% GHG (CO2e generation) 14.8% 30 years Operation ($11.6M) Resource (fossil, water, materials w/ %5 recycle content ) 68.6%

29 Can Eco-Cost Accounting be a future driver?

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31 Source: Wessex Water/GENeco

32 Interested to get involved?

33 Register NOW!

34 Join Us! Friends of Green Building To get the latest information on HKGBC green building education initiatives e.g. seminars, guided tours, contests, exhibitions, funfairs etc.