Briefing: Policies for Energy Efficient Buildings in China

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Context
China has the biggest construction volume in the world (nearly half of the world's new building construction now is in China with approximately 2 billion m² of floor area being constructed annually) (1). More than ninety percent of new buildings are considered to be high life-cycle energy buildings. Energy consumption of buildings rose from 10% of the national total in the late 1970s to more that 25% in 2006, and is expected to increase further to 35 % by 2020 (2). The Chinese central government is concerned by the rapid growth in energy consumption in the construction sector and several Chinese ministries are now trying to promote low energy construction technologies as well as policy reinforcement.

At present, investment in energy efficiency is expected to expand rapidly with projections of 500 billion yuan (67.7 billion US$) offered by 2008. Building energy efficiency is included as one of the 10 key programmes targeting energy efficiency improvement in the 11th Five-Year Plan (2006-2010). The building sector is expected to contribute 40% of the total energy-saving targets for the period (3).

EEB Policy
In China, there are two sets of national building energy standards (one for public buildings and another for residential buildings). Although China has developed building energy standards they are narrow in their scope and lack a strong regulatory framework to incorporate energy efficient standards in construction. While both standards are set as mandatory by the Ministry of Construction (MoC) enforcement remains a problem. In 2005, to address such issues, the central government begun a building inspection program to monitor the implementation of building energy efficiency. Under this programme design institutions, developers and construction companies will lose their licences or certificates if they don’t comply with the regulations.

In November 2004, the National Development and Reform Commission (NDRC) issued the China Medium and Long Term Energy Conservation Plan (Conservation Plan), which stressed energy conservation as the key principle for sustainable socio-economic development in China and an urgent issue to address. In the Conservation Plan, energy saving targets for buildings have been emphasized:

1. During the "Eleventh Five-year Plan" period, new buildings should strictly subject to the design standard of 50% energy conservation. Several major cities such as Beijing and Tianjin shall take a lead in implementing the 65% energy-saving standard.
2. Energy saving retrofit for existing residential and public buildings shall be conducted in combination with urban reconstruction. Large cities are expected to improve 25% of building areas, medium cities 15% and small cities 10% (4).

The Chinese government prioritise government office buildings and large scale public buildings as the targets for energy-saving initiatives. Energy data collection and energy audit and information disclosure systems for these two types of buildings will be initiated by the relevant governmental agencies as it is required in the 11th Five-Year Plan. China has not offered any financial incentives to promote energy-efficient buildings. However, MoC has conducted studies with other governmental agencies on introduction of an incentive mechanism, soon to be sent for approval. Meanwhile, the Regional Finance Research Division of the Research Institute for Fiscal Science (under the Ministry of Finance) and the China National Institute of Standardization are designing tax and fiscal policies to encourage commercialization of efficient appliances and equipment. They are expected to develop policy recommendations and an implementation plan.

Standards and Ratings
The MoC recently unveiled the "Evaluation Standard for Green Building" (GB/T 50378-2006), which is similar to LEED in structure and rating process. The building energy consumption data will be collected by MoC, which will be used to asses building performance, a three-star Green Building certificate will be awarded to the qualified buildings. Green Olympic Building Assessment System (GOBAS) is another green building rating system, which was developed from the Japan's Comprehensive Assessment System for Building Environment Efficiency (CASBEE). High-performance building projects are being supported both by the government and business. LEED itself is also being used. At the end of 2007, there are reported to be 5 Chinese projects certified under LEED, with another 51 projects registered. (5)

Objectives of continuing sustainable building advocacy in China
The rate and volume of new construction in China presents huge potential for increased environmental impacts, and particularly CO2 emissions from the building sector. It also represents a massive potential for rapid innovation if government authorities can be assisted in developing and enforcing regulations for extreme life-cycle energy efficiency measures. Research commissioned by SBCI has shown that such policy instruments are most effective when implemented within a package of incentives and awareness-raising with industry stakeholders. The objective of continuing to try to engage with Chinese building sector stakeholders is therefore to facilitate public-private-sector dialogue on policy reform and enable the knowledge and tools required for implementation.

Other Advocates in the Region
The World Green Building Council (WGBC): Assists establishing national green building councils. WBGC (an SBCI Member) has assisted the Ministry of Construction in China to establish the China Green Building Council. They are hosting the 4th China Conference on Intelligent, Green and Energy Efficient Building on March 31st - April 1st 2008. www.chinagb.net

The World Business Council for Sustainable Development (SBCI Partner Organization) together with the International Energy Agency (IEA) hosted the Energy Efficiency in Buildings (EEB) China Forum in Beijing, March 2007. After the workshop EEB members, the Chinese Ministry of Construction, the local BCSD (Chinese Business Council for Sustainable Development) and representatives from the IEA and the Global Environment Facility (GEF) met to discuss the outcomes of the Forum discussions. A Task force is now being set-up under the auspices of the CBCSD to define future areas of cooperation including creating a CEEB: China Energy Efficiency in Buildings program. (EEB, March 2007).

SBCI Outreach to China 2008
In partnership with the World Green Building Council, the China Green Building Council and SBCI Member Broad Air-conditioning, UNEP SBCI are hosting to two high-level round-table workshops on sustainable buildings in China for business leaders in the Chinese construction sector and Government Ministries. The round-tables will be held on the afternoon of the 31st March and morning of the 1st April 2008 at the Beijing Grand Continental Hotel. These follow directly the 4th China Green Building Conference organized by the China Green Building Council (see above).

The world's attention is now firmly on China and the initiative of its domestic building sector in addressing global issues such as climate change. The question is; what role can China's construction-sector play in helping China lead the world in sustainable buildings and construction?