Energy efficiency law for buildings will have big impact
New ordinance will affect every company that is a full or part owner of space in a commercial building, so study it well
Decision-makers for any company that owns or leases commercial property in Hong Kong would be well advised to familiarise themselves with the Buildings Energy Efficiency Ordinance which came into effect last month.
The provisions of the ordinance may save owners or tenants millions of dollars, cost millions of dollars, or even result in fines of millions of dollars, not to mention the possibility of prison terms for extreme transgressions. So it will pay to study the law and make the right decisions.
The law has three sections. One section covers new buildings; another renovations; and the third sets out a requirement for certain buildings to undergo an energy audit every 10 years.
The law is a minimum standard. It specifies the minimum level that must be met, below which one is breaking the law. It is not in any way a high standard, a best practice, or a mark of excellence.
For new buildings, the minimum standard imposed by the law governs just four building installations - the air conditioning system, the electrical system, lighting, and lifts and escalators.
For existing buildings (bearing in mind that new buildings become existing buildings the day they receive their occupation permit) the minimum standard imposed by the law governs those same four categories. It specifies that renovations (the ordinance uses the term "major retrofits") involving the four installations, or of floor space greater than 500 square metres (about 5,400 square feet) need to meet the codes in force at that time.