The Global Buildings Performance Network (GBPN) has published a new report on China. The report, prepared by the Economist Intelligence Unit, Achieving scale in energy-efficient buildings in China: A view from the construction and real estate sectors, was commissioned by the Global Buildings Performance Network (GBPN) in collaboration with the Energy Foundation’s China Sustainable Energy Program (CSEP), and in partnership with the World Business Council for Sustainable Development (WBCSD).
The report explains that 28% of China’s carbon dioxide emissions originate from energy use in buildings. Government programmes to promote green buildings are well received by the country’s growing private sector, which is increasingly investing in buildings that meet national and international green certification standards. The report goes on, however, to stress that greater awareness of cost savings, clearer regulation and easier access to domestic financing are necessary to achieve scale and mitigate carbon emissions.
Other important findings from the report include:
- Low awareness of the potential cost savings restricts demand for energy-efficient building in China. Chinese buyers are price-sensitive and don’t yet understand the savings associated with energy-efficient buildings.
- Until recently, developers have had little incentive to spend extra for energy-efficient construction, but new government programs are helping build a better business case. Last year, $8.5m in government subsidies was made available to each “ecological” district that meets green building standards.
- The private sector is helping fuel demand for energy-efficient buildings. Companies are increasingly drawn to buildings that meet national and international green certification standards; they are also looking to meet their corporate social responsibility (CSR) objectives.
- Increasing government subsidies and international funding compensates for gaps in finance provided by Chinese banks. China’s commercial banks are wary of lending for construction of energy-efficient buildings as such projects are often considered more costly, thus requiring greater investment.
- Companies are looking for easier access to financing and are not afraid of more stringent legislation.
- Achieving rapid scale up of energy efficient building will also depend on encouraging demand through raising awareness from homebuyers to corporations— who must see better value in energy-efficient buildings.
The report is available here.
Energy in Demand - Sustainable Energy - Rod Janssen 