The event marks the launch of HKUST’s new report, Financing the Retrofitting of Hong Kong’s Existing Buildings: Unlocking Energy Efficiency for Climate and Economic Goals. The report examines financial models that can support Hong Kong in “driving the market to accelerate carbon reduction in existing buildings,” as outlined in the Chief Executive’s 2025 Policy Address.

As part of this effort, HKUST has selected one of its campus buildings for retrofitting using a performance-based contracting model. This live demonstration aims to help the local market better understand and adopt such financing mechanisms to scale up energy efficiency retrofits across the city.

Rundown:

• Welcome by Prof Kar Yan Tam (HKUST)
• Report presentation by Prof. Christine Loh (HKUST) [PRESENTATION]
• Demonstration Building presentation by Dr. Kenneth Leung (HKUST) [PRESENTATION]
• Remarks by HKGFA [PRESENTATION]
• Remarks by HKGBC [PRESENTATION]
• Q&A Session

Buildings account for over 90% of Hong Kong’s electricity use and about half of its carbon emissions. With most of today’s building stock still standing in 2050, large-scale retrofitting is indispensable to achieve climate goals, control energy costs, and safeguard economic competitiveness.

Retrofitting delivers more than carbon reduction. It conserves resources, extends building life, improves indoor environments, and treats older buildings as enduring community assets where fresh value can be unlocked.

The main challenge of retrofitting is not only technology but finance. High upfront costs, fragmented ownership, and performance trust have kept retrofits voluntary and underdeveloped. The report focuses on performance-based contracting (PBC) as a financing mechanism that shares the risks and benefits between building owners on capital costs and the contractor by linking repayments to verified energy savings.

The research is supported by the Research Grants Council’s Theme-based Research Project on Developing Hong Kong as a Global Green Finance Centre. At the event, the Hong Kong Green Finance Association (HKGFA) highlighted their latest report, Activating the Retrofitting Market in Hong Kong launched on 8 September 2025, and the Hong Kong Green Building Council (HKGBC) will share insights from their work on retrofitting buildings.
 

Click HERE to download the report.