Project Evergreen – Green Revolving Fund
Web Site: http://www.greeninghk.hk
More Livable HK
Evergreen is an organization focusing on all things “green,” with emphasis on reducing Hong Kong’s carbon footprint by making energy efficient technologies accessible. This is possible through a combination of financial modeling and environmental consultation.
Energy efficient technologies for commercial buildings abound, yet few commercial property owners are upgrading their buildings. Although owners know the huge potential savings, they are discouraged by the high up-front costs. Commercial tenants also fear that any capital improvements will mean increased rents. Simply put, there are huge incentive gaps making commercial electricity usage inefficient and wasteful.
More than 60% of electricity usage in Hong Kong is from commercial properties, and Hong Kong’s electricity is generated by burning coal. Therefore, if commercial usage is reduced, we can drastically reduce Hong Kong’s carbon footprint, and improve the health of its residents. Also, property owners will see significant cost savings.
Through Evergreen’s Green Revolving Fund, we will provide low interest loans to cover the capital costs needed to install energy efficient technologies. Property owners then repay the loans using the cost savings from lower utility bills. As the loans are repaid, the GRF grows. The money is then redeployed to new projects.
This is a win-win scenario where owners can upgrade without disrupting their tenancies or cash flow. GRFs have proven to be financially sustainable. The savings are extremely predictable making defaults unlikely and the social impact quantifiable. It is rare that such a simple idea can have such a significant impact.
Jon Andre Pederson (HKU)
QIAN Mengqi, Isabella (HKU)
Shayan Idrees (HKU)
Joshuah Lebacq (HKU)
Bishop DAVID (HKU)