HKUST and Consortium of French Companies Sign Contract and MOU for Groundbreaking Low-Carbon Retrofit Pilot Projects

HKUST and consortium of French companies ink pact to advance low-carbon retrofit via new investment model

Invest Hong Kong (InvestHK) today (July 8) welcomed the signing of the first works contract and a second-phase Memorandum of Understanding (MOU) between the Hong Kong University of Science and Technology (HKUST) and a consortium of French companies, marking a progressive step that translates the low-carbon retrofit partnership commenced in September 2025 into concrete action.

Signed by HKUST, Schneider Electric and Veolia, the works contract sets a 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 senses real-time classroom occupancy and adjusts the cooling mechanism automatically, keeping users comfortable while cutting wasted energy. The project is expected to be completed within 24 months.

As well, HKUST,Bouygues-Dragagesand Veolia signed the second-phase MOU that 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 decarbonising the city's built environment.

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.

Officiating the signings, the Consul-General of France in Hong Kong and Macau, Ms Christile Drulhe, said, "After the signing of the first-phase MOU last year, I am delighted to see HKUST and our 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."

The Director-General of Investment Promotion of InvestHK, Ms Alpha Lau, said, "Carbon neutrality is crucial to communities and businesses alike, while offers immense business 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, research and investment."

Acting President of HKUST, Professor Tam Kar-yan, said, "Our partnership with Team France began in 2025 with an MOU to explore opportunities in building decarbonisation and retrofitting. That MOU laid a strong foundation for what we formalise today: a performance-based model defined by measurable outcomes and clear accountability under this EPC. We are moving from intention to implementation, and through a second-phase MOU with Team France, expanding collaboration to the broader retrofit initiative, reflecting HKUST's enduring commitment to decarbonisation, energy efficiency, and a net-zero future."

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.

Invest Hong Kong (InvestHK) today (July 8) welcomed the signing of the first works contract and a second-phase Memorandum of Understanding (MOU) between the Hong Kong University of Science and Technology (HKUST) and a consortium of French companies, marking a progressive step that translates the low-carbon retrofit partnership commenced in September 2025 into concrete action. Photo shows the second-phase MOU signed by the Acting President of HKUST, Professor Tam Kar-yan (front row, centre); the President of Schneider Electric Hong Kong, Mr Jonathan Chiu (front row, right); and the Chief Executive Officer of Veolia Hong Kong and Macau, Mr Laurent Pelletier (front row, left). The signing ceremony was witnessed by the Consul-General of France in Hong Kong and Macau, Ms Christile Drulhe (back row, fifth right); the Director-General of Investment Promotion of InvestHK, Ms Alpha Lau (back row, centre); the Commissioner for Climate Change of the Environment and Ecology Bureau, Mr Sammy Yeung (back row, fifth left); and the Chief Development Strategist of the Institute for the Environment at HKUST, Professor Christine Loh (back row, fourth right). Source: HKSAR Government Press Releases

Invest Hong Kong (InvestHK) today (July 8) welcomed the signing of the first works contract and a second-phase Memorandum of Understanding between the Hong Kong University of Science and Technology (HKUST) and a consortium of French companies, marking a progressive step that translates the low-carbon retrofit partnership commenced in September 2025 into concrete action. Photo shows the first works contract signed by the Acting President of HKUST, Professor Tam Kar-yan (front row, centre); the Chief Executive Officer Asia Pacific of Bouygues-Dragages, Mr Bruno Botella (front row, right); and the Chief Executive Officer of Veolia Hong Kong and Macau, Mr Laurent Pelletier (front row, left). The signing ceremony was witnessed by the Consul-General of France in Hong Kong and Macau, Ms Christile Drulhe (back row, centre); the Director-General of Investment Promotion of InvestHK, Ms Alpha Lau (back row, second left); the President of Schneider Electric Hong Kong, Mr Jonathan Chiu (back row, first right); the Commissioner for Climate Change of the Environment and Ecology Bureau, Mr Sammy Yeung (back row, first left); and the Chief Development Strategist of the Institute for the Environment at HKUST, Professor Christine Loh (back row, second right). Source: HKSAR Government Press Releases

Speech by FS at Cathay 80 Years Together Dinner

Following is the speech by the Financial Secretary, Mr Paul Chan, at Cathay 80 Years Together Dinner this evening (September 15):

Guy (Chair of Cathay Group, Mr Guy Bradley), Deputy Director Zhang Yong (Deputy Director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region), Deputy Commissioner Li Yongsheng (Deputy Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the Hong Kong Special Administrative Region), Ronald (Chief Executive Officer of Cathay Group, Mr Ronald Lam), Consuls-General, distinguished guests, ladies and gentlemen,

Good evening.

It is a great pleasure to celebrate Cathay Pacific's 80th anniversary with you. Tonight, we celebrate not only an airline, but a journey that belongs, in a very special way, to Hong Kong.

From Betsy, your pioneering DC-3, to today's global network, Cathay has grown together with Hong Kong. Even your name speaks of ambition: "Pacific" expressed the dream of crossing that vast ocean, long before the airline could do so. That spirit - starting modestly, thinking boldly and looking outwards - is unmistakably Hong Kong.

For generations, Cathay has been part of life's most meaningful journeys: the first trip abroad, departure for university, a business venture and a long-awaited reunion. And for returning travellers, that familiar welcome on board brings a comforting feeling: home is already a little closer.

Of course, your journey had difficult chapters. During the pandemic, the Government's support reflected our determination to safeguard Hong Kong's status as an international aviation hub and our confidence in Cathay's role within it. That was an investment in our shared future. And it was your people - their professionalism, perseverance and dedication - who helped turn confidence into recovery.

Your work matters far beyond air connections. For Hong Kong, every new route is another opening for trade, investment and opportunity. This is our "super connector" role in practice: bringing businesses to markets, and people to one another.

Looking ahead, the National 15th Five-Year Plan explicitly supports Hong Kong in consolidating and enhancing our status as an international aviation hub. We are determined to translate that support into greater capacity, wider reach and lasting economic benefits.

Our Three-Runway System and newly opened Terminal 2 facilities provide more room for growth. The Airport Authority's expanded Airport City development, SKYTOPIA, will further strengthen our airport's appeal - as both a gateway and a destination.

With these developments, the Government is pursuing new air services agreements and expanded traffic rights, particularly with partners in the Middle East, Central Asia, Africa and South America. These efforts will give airlines more opportunities to expand their networks through Hong Kong and strengthen our Belt and Road connections.

Cathay's plan to launch direct flights to Almaty, Kazakhstan, in January 2027 is a welcome example. It will open a new gateway to Central Asia, creating opportunities for business, tourism, cultural exchanges and deeper friendship between our communities.

As the Government opens the way for wider air links, I encourage Cathay to seize these opportunities and add new destinations to your network.

In an uncertain world, we must pursue these opportunities with prudence as well as confidence. The case for bringing people together and opening up new markets is stronger, not weaker.

Cathay's commitment of around HK$150 billion to aircraft, cabins, lounges and digital innovation is a welcome vote of confidence in Hong Kong's future. I look forward to seeing that investment deliver better journeys for passengers, rewarding careers for local talent, and fresh possibilities for our city.

As Hong Kong's home carrier, you are an ambassador for the city. For many visitors, their first impression of Hong Kong begins with your welcome, before they ever see our skyline. Safety without compromise, service with care and respect, onboard dining experience worthy of Hong Kong's reputation, and professionalism in every detail: these are the qualities that earn trust and make Hong Kong proud.

And, ladies and gentlemen, I am sure passengers would be delighted to see one more thing: your excellent service accompanied by equally attractive fares. Guy and Ronald, I shall leave that in your capable hands.

Happy 80th anniversary, Cathay Pacific. May you continue to bring the world closer to Hong Kong, and Hong Kong closer to the world - and wherever you fly, carry the warmth, ambition and spirit of this city with you. Thank you very much.

Speech by FS at Cathay 80 Years Together Dinner Source: HKSAR Government Press Releases

Speech by FS at Cathay 80 Years Together Dinner Source: HKSAR Government Press Releases