Sustainable Lantau Office (SLO), Civil Engineering and Development Department (CEDD)

SCA 2018 Project Owner (Public Sector) - Bronze Award

Dedicated to the overarching principle of “Development in the North, Conservation for the South” in the Sustainable Lantau Blue print promulgated in 2017, SLO is responsible for coordination, planning and implementation of various initiatives with a view to balancing development and conservation on Lantau. TCNTE project is one of the housing and economic developments under SLO giving the showcase of our best practices and achievements in sustainable development and construction.

TCNTE is the first public works project adopting deep cement mixing method to strengthen the marine mud before seawall construction. With this method, this avoids dredging the seabed and disposal of 4.4 million m³ dredged marine mud and reduces 17,600 marine vessel trips. This substantial reduction can minimise the impact and disturbance to the habitats of Chinese White Dolphins in western water of Hong Kong.

TCNTE is the first project in Hong Kong to require the contractor to engage a global positioning system (GPS) on dump trunks to provide real time tracking of C&D materials within the territory to avoid eco-vandalism on Lantau Island and effectively to deter illegal dumping. A dedicated surveillance team keeps track of the movement to identify and report immediately on suspected illegal dumping and landfilling.

TCNTE is the first project to adopt eco-shorelines in reclamation works in Hong Kong. An eco-shoreline will be constructed along the proposed seawall at Tung Chung East reclamation area with the primary objective of mimicking the physical properties of natural inter-tidal zones as far as practicable, in a bid to provide a more suitable habitat, namely a tidal eco-system, for colonisation of marine species.

About the Model

The HKSAR Chief Executive had announced in the 2017 Policy Address to position Hong Kong as an Asia’s green finance hub for raising green capital. In view of the substantial GDP contributed by the construction sector annually, the construction industry has a high potential to meet the trend of green finance. Thus, there is a need to well define the green standard and system to facilitate the application of green finance in construction industry.

The Model aims to act as an interactive guide on environmental practices and advanced technologies for construction projects which is compatible with international green bond/loan principle. Green finance can mobilise capital for green and low carbon investments in the construction industry. Public owners, developers, contractors and suppliers could issue green financial instruments for funding their projects with reference to the guideline of this model.

Interactive guide to classify construction practices based on green finance principle

Interactive guide to classify construction practices based on green finance principles

User-friendly model for set up its own checklist and sustainability KPIs

User-friendly model for set up its own checklist and sustainability KPIs

Sustainable hub to share latest local and intentional solutions

Sustainable hub to share latest local and international solutions

Why the Industry Needs Green Finance?

  • Green finance providing benefits for assisting the transition from the ‘brown’ to the ‘green’ construction.
  • Green finance can mobilise capital for green and low carbon investments in the construction industry
  • Stakeholders can seek opportunities for long pay back initiatives and low interest rates when adopting advanced and innovative measures.
  • To encourage investors from the Mainland along the Belt and Road as well as international investors to arrange green financing through Hong Kong construction capital markets.

Components of Green Bond/Loan Principles

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Green bond/ loan proceeds are to be applied for environmental (or “green”) projects with an indicative list of eligible project categories. See the figure below for the 10 eligible Green Project Categories.

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Recommends issuers/ borrowers to disclose their overall green objectives, the process used to determine eligibility of green projects, and the process to manage environmental and social risks of these projects.

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The net proceeds of the Green Bond/ Loan, or an amount equal to these net proceeds, should be credited to a sub-account, moved to a sub-portfolio or otherwise tracked by the issuer/ borrower in an appropriate manner, and attested to by the issuer/ borrower in a formal internal process linked to the issuer’s/ borrower’s lending and investment operations for green projects.

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Recommends annual reporting of the amounts allocated and results of the eligible green projects.

Green Project Categories

Key Features

no. of sustainability measures compatible with international green bond and green loan principle
41
no. of sustainability measures compatible with international green bond and green loan principles
no. of stakeholders and green finance experts engaged
162
no. of stakeholders and green finance experts engaged
no. of pilot projects
30
no. of pilot projects

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