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The real estate industry in China is one of the key industries driving economic growth. It promotes industrialization and urbanization, improving the living standards of people. However, the growing real estate industry has also resulted in high energy consumption and pollution. Since 2008, the carbon dioxide emission in the country has been the highest globally. Notably, the greenhouse gas emissions from the real estate sector accounted for a relatively high proportion, and this ratio is still increasing. The rising emissions have acted as a barrier to reduce greenhouse gas emissions.
According to ConsTrack360's Q4 2020 Global Construction Survey, construction industry in China is expected to grow by 12.4% to reach US$ 1355314.5 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in China remains intact. The construction industry in China is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 6.4% during 2021-2025. The construction output in the country is expected to reach US$ 1737386.8 million by 2025.
To support green building in the country, since 2006, China has established its green building certification system and established the China Green Building Council, which collectively provides rules for the market.
The Ministry of Housing and Rural-Urban Planning intends to be carbon neutral by 2060. Moreover, the central government aims to have 70% of new buildings be green-certified by 2022 as per its standard, up from 56% in 2018. In Hebei, the provincial government subsidizes ultra-low-energy buildings with US$30 (200 yuan) per square meter. Also, Beijing’s local building codes are stricter than national efficiency standards. All new developments in the city are required to achieve a minimum level (one star) of certification from China’s Three-Star green building rating program. It subsidizes buildings that achieve higher rates.
Also, several policies have been enacted to promote green buildings in the country. In 2016, the Green Building Evaluation Standard ‘GB/t50378-2006’ was issued, which was the beginning of the green real estate industry in China. Later, the 12th Five-Year Plan for the development of green buildings and green ecological urban areas and the 13th Five-Year Plan for the development of the construction industry has also been key to support green building growth in the country. Further in 2019, the Ministry of Housing and Urban-Rural Development released a version of the Green Building Evaluation Standard ‘GB/t50378-2019’, which directed the deployment of green technology and encouraged green buildings in the country.
The government adopted various economic preferential policies to encourage investments in the sector to promote green buildings further. Also, the Hangzhou government is focusing on constructing green venues for the 2022 Hangzhou Asian Games. The village was received the National Second-level Green Ecological Urban Zone award, distinct in Zhejiang Province. Due to various sustainable features, the village was also chosen to host solar panels, efficient insulation, green spaces, and rainwater recycling systems.
