Infrastructure & Cities

Achieving scale in energy-efficient buildings in China

July 29, 2013

Asia

July 29, 2013

Asia
Our Editors

The Economist Intelligence Unit

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Read how the largest consumer of energy in the world, China, is overcoming obstacles to create more energy-efficient buildings.

Report Summary

China is the largest consumer of energy in the world, with economic growth and rapid urbanization pushing energy consumption even higher. According to the Chinese government, approximately 28% of China’s carbon dioxide emissions now originate in buildings, up from 10% three decades ago. Energy demand in buildings is rising along with economic expansion and affluence. While the Chinese economy has cooled somewhat, GDP is expected to grow by a yearly average of 7.5% over the next five years; the World Bank projects a tripling of energy demand from buildings over the next two decades.

CO2 emissions are rising with energy consumption. China emits roughly 6bn tonnes of greenhouse gases a year—about 20% of total estimated global emissions of 36bn tonnes, according to PBL Netherlands Environmental Assessment Agency (the US is responsible for about 16%). Levels of pollution have become worrisome: they are suffocating China’s urban populace and alerting government and businesses to the urgent need to curb emissions.

Incentives for and demand for energy-efficient buildings remain low, but the Chinese government is now developing plans and programmes to promote green buildings. Although occurring mostly at the national level, demand is increasing at the state and local levels as well. If these efforts lead to greater awareness of cost savings, stronger legislation and greater access to capital and investment incentives, private companies along with state-owned enterprises (SOEs) could lead the charge to achieve scale in energy-efficient buildings. The Chinese private sector is particularly open to change. Some 83% of executives from China’s building sector accept reduction of carbon emissions as a corporate responsibility, compared with 60% of US executives, according the Economist Intelligence Unit (EIU) June 2012 survey of global building executives, commissioned by the Global Buildings Performance Network (GBPN).

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