Introduction of the Buildings Energy Efficiency Ordnance (BEEO)

• Transition to “Net-zero Electricity Generation” comes at a price while the effort on “Energy Saving and Green Buildings” to reduce the building electricity consumption can lower the cost of decarbonisation. Therefore, the Hong Kong's Climate Action Plan 2050 sets up targets to reduce the electricity consumption of commercial buildings by 30% to 40% and that of residential buildings by 20% to 30% from the 2015 level by 2050, and to achieve half of the above targets by 2035.
  
  
• Hong Kong's buildings account for about 90% of the city's electricity use. Over 60% of our carbon emissions are attributable to generating electricity for our buildings. Thus, achieving energy saving in the building sectors is the primary target for the long-term. Since 21 September 2012, the Buildings Energy Efficiency Ordinance (BEEO) came into full operation by mandating the specified requirements to comply with the Building Energy Code (BEC) in respect of regulating the minimum energy efficiency standards of the design of building services installations in newly constructed buildings and major retrofitting works in existing buildings; and requiring owners of commercial buildings to conduct energy audit according to the Energy Audit Code (EAC).
  

Content of BEEO

• The BEEO covers thirteen (13) prescribed buildings, including
  
  • Commercial building.
  • A portion of a composite building that is not for residential or industrial use.
  • Hotel and guesthouse.
  • Common area of a residential building.
  • Common area of a portion of a composite building that is for residential or industrial use.
  • Common area of an industrial building.
  • Building that is occupied principally for an education purpose.
  • Building that is occupied principally as a community building including a community hall and social services centre and composite building occupied as 2 or more such places.
  • Building that is occupied principally as a municipal services building including a market, cooked food centre, library, cultural centre and indoor games hall and composite building occupied as 2 or more such places.
  • Building that is occupied principally for medical and health care services including a hospital, clinic and rehabilitation centre.
  • Building that is owned by the Government and used principally for the accommodation of people during the performance of any function of the Government.
  • Passenger terminal building of an airport.
  • Railway station.
  
  The three (3) key requirements of the BEEO:
  
  • The developers or building owners of newly constructed buildings should ensure that the four (4) key types of building services installation including
    
    • air-conditioning installation;
    • lighting installation;
    • electrical installation; and
    • lift and escalator installation
    comply with the design standards of the Code of Practice for Energy Efficiency of Building Services Installation (BEC).
  • The responsible persons such as owners, tenants or occupiers in buildings should ensure that the four (4) key types of building services installation therein comply with the design standards of the BEC when undergoing “major retrofitting works”.
  • The owners of commercial buildings including the commercial portions of composite buildings like shopping malls under residential storeys should carry out energy audit for the four (4) key types of Central Building Services Installation therein in accordance with the Code of Practice for Building Energy Audit (EAC) once every ten (10) years.
    
  In order to ensure the prescribed building is designed and constructed with minimal energy performance set by the BEEO, the developer is requested to submit a “stage one declaration” and a “stage two declaration” to the Electrical and Mechanical Services Department (EMSD) to apply for a Certificate of Compliance Registration (COCR) and engage a Registered Energy Assessor (REA) to
  • certify and submit the “stage one declaration” within 2 months after the day on which the “consent to the commencement of building works” for superstructure construction
  • submit the certified “stage two declaration” within 4 months after the day on which the “occupation permit” is given.
  
  The COCR is valid for ten (10) years.
  
  Similarly, for any building major retrofitting works, such as replacement of lift or major air-conditioning equipment, the owner(s) or tenant is required to obtain a certified Form of Compliance (FOC) from the engaged REA within two months of completion of works.
  
  For those commercial buildings completed with energy audit, the owners are required to exhibit the valid Energy Audit Form in a conspicuous position at the main entrance of the building.

Development and achievement of BEEO in the past ten years

• Following the enactment of the BEEO in 2012, the BEC and the EAC were promulgated at the same time to regulate the energy efficiency of buildings services installations.
  
  Both BEC and EAC are reviewed once every 3 years. Today, a total of 3 major reviews had already been conducted.
  
  The new edition of BEC 2021 has been fully implemented on 1 July 2022 for Stage One Declaration (new building projects) and 1 October 2022 for Form of Compliance (major retrofitting works) respectively.
  
  Under the 2021 edition of the BEC, the energy efficiency standards of building services Installations were uplifted comprehensively, with an overall improvement of more than 15% in energy saving as compared with the 2015 edition.
  
  Also, the electricity conserved from implementing energy saving measures related to the BEEO is about 1,500 million kWh by 2020 from 2015.
  
  Since the implementation of the BEEO in 2012, it has covered over 1,900 new buildings, 13,000 major retrofitting works of existing buildings and 2,600 energy audit report, with fruitful results. We are very grateful to stakeholders including Registered Energy Assessors, developers, building owners, property management companies and the trade etc. on their participation and commitment for long-term decarbonisation and sustainable development in Hong Kong.
  
  To ease the submission process, in addition to by mail and delivery in person, EMSD has also allowed E-submission via EMSD Web-Based Regulatory Services by using iAMSmart+.
  
  

Future of BEEO

• To successfully combat climate change, the whole community must work hand-in-hand. The Government, the private sector and the general public must take proactive actions in energy saving and decarbonization together and support low-carbon transformation with a view to striving towards the target of achieving carbon neutrality.
  
  
• As a way forward, we will make good use of the BEEO as an effective regulatory tool to step up efforts in promoting energy conservation on the basis of existing regulations, and be more proactive to look for further decarbonisation opportunities in buildings such as i) to explore feasible options to cover more building types under the Regulation; ii) to explore requiring more frequent energy audits and study the introduction of measures to encourage building owners to implement EMOs identified in energy audits and regular commission large central air-conditioning systems; iii) encourage building owners to disclose more energy-related data to improve data transparency, whereas to accelerate market participation in buildings energy efficiency and advocate better environmental, social and governance (ESG) performance, so as to help Hong Kong strive carbon neutrality before 2050.