HKUST and Team France Ink Pact to Advance Low-carbon Retrofit via Groundbreaking Green Investment Model

The Hong Kong University of Science and Technology (HKUST) and a consortium of leading French corporations today signed a works contract and a second-phase Memorandum of Understanding (MoU). Welcomed by Invest Hong Kong (InvestHK), the two agreements mark a significant step forward and turn the low-carbon retrofit partnership established in September 2025 into concrete action.

Signed by HKUST, Schneider Electric and Veolia, the works contract sets the retrofit pilot in motion at the Lee Shau Kee Business Building on the HKUST campus. It adopts a groundbreaking Energy Performance Contract (EPC) model, under which both French companies finance the upfront investment, to be recovered over a 15-year term through verified energy savings, while HKUST bears no construction or equipment costs. At its heart is an AI-powered system that detects classroom occupancy in real time and automatically adjusts cooling levels to keep users comfortable and reduce energy waste. The project is expected to be completed within 24 months.

Signed by HKUST, Bouygues-Dragages and Veolia, the second-phase MOU aims to extend the collaboration beyond the initial building to student residences and other campus blocks. It will also explore innovative financing mechanisms to support the broader retrofitting across Hong Kong. Together, these two agreements move the partnership toward a scalable, data-oriented, and market-driven model for decarbonizing the city's built environment.

Officiating the signing ceremony, Ms. Christile DRULHE, the Consul-General of France in Hong Kong and Macau, said, “After the signing of the first phase last year, I am delighted to see HKUST and our French partners in Team France press ahead and turn ambition into action through this pioneering project. By leveraging the HKUST campus as a pilot to drastically reduce energy consumption and French investment as a test case of public-private partnership, this initiative powerfully demonstrates how French innovation and Hong Kong excellence can accelerate the low-carbon transformation of our built environment.”

Ms. Alpha LAU, the Director-General of Investment Promotion at InvestHK, said, “Carbon neutrality is crucial to communities and businesses alike, offering immense growth opportunities. This collaboration highlights how world-class European green technology aligns with Hong Kong’s targeted green ambitions. In this groundbreaking pilot, we do not just facilitate investment but also help build an addressable sustainability market that connects government, industry, academia and research.”

Prof. TAM Kar-Yan, Acting President of HKUST, said, “Our partnership with Team France began in 2025 with an MoU to explore opportunities in building decarbonization and retrofitting. That MoU laid a strong foundation for what we formalize today: a performance-based model defined by measurable outcomes and clear accountability under this Energy Performance Contract. We are moving from intention to implementation, and through a Phase 2 MoU with Team France, expanding collaboration to the broader retrofit initiative, reflecting HKUST’s enduring commitment to decarbonization, energy efficiency, and a net zero future.”

These latest initiatives build upon the publication of the 'Team France Green Paper' by a coalition of French diplomatic, trade, and commercial entities in Hong Kong back in April 2024 — collectively known as Team France — dedicated to accelerating the city’s path to carbon neutrality by 2050. Supported by the strategic advisory of the Consulate General of France in Hong Kong and Macau and the facilitation of InvestHK, this groundwork led to a pilot retrofit partnership with HKUST in 2025.

Given that over 90 per cent of Hong Kong's existing buildings are expected to still be standing in 2050, the retrofit sector offers substantial opportunities for European and international companies to invest, innovate, and grow, while contributing to the high-quality development of the city.