What are China's green buildings and why they matter in 2025
With two high-profile conferences spotlighting green buildings, 2025 will mark their pivotal rise in China's development agenda.
Since the 2024 Central Economic Work Conference last December officially recognized green buildings as a "new growth driver" for the first time, it was prominently mentioned again in this year's Government Work Report delivered by Chinese Premier Li Qiang, as I covered the other day.
If you believe that the annual Central Economic Work Conference and "two sessions" have a big say in shaping China's development agenda, you may agree that, green building will definitely find its position in the coming year after being highlighted in two high-profile conferences.
Therefore, it is logical to figure out what this concept truly means within the Chinese context.
As a matter of fact, green building is increasingly recognized as a global standard. Last month, while following the German elections, I took the well-known survey, Wahl-O-Mat, which included several questions related to green building, such as this one:
Translation: New heaters should also be allowed to be operated entirely with fossil fuels (e.g., gas or oil) in the future.
So, what is the focus of green building in China? Today's newsletter may offer you a glimpse into it by featuring an interview between China Environment News (中国环境报) and Dr. Ni Jiangbo 倪江波 in December 2024.
According to its official introduction, China Environment News, founded in 1984, is a media outlet directly under the Ministry of Ecology and Environment. It is the only national-level environmental protection newspaper in the world.
Dr. Ni Jiangbo is the president of the China Association of Building Energy Efficiency and former Level I Bureau Rank Official (一级巡视员) at the Department of Standards and Quotas, Ministry of Housing and Urban-Rural Development. He has long been involved in policy-making, management, and research on urban and rural construction technology, green low-carbon development, and information technology.
The 2025 Government Work Report sets carbon emission reduction, pollution control, green development, and economic growth as core tasks for the year. Dr. Ni believes that positioning green buildings as a new growth driver is a clear reflection of this strategic direction.
In his view, buildings that meet energy-saving standards—particularly ultra-low-energy buildings, near-zero energy buildings, low-carbon buildings, and zero-carbon buildings—are all essential parts of the green building movement.
From the upstream aspects of green building planning, design, and construction to the midstream of green construction, green materials, and down to the downstream focus on energy-saving, water conservation, and material saving in operations, Dr. Ni sees enormous business opportunities at every stage of the green building process.
Furthermore, he emphasizes the need to integrate existing building energy-saving retrofitting with urban renewal projects. This includes renovation goals, planning and design, objectives, incentive policies, and social participation.
Finally, he discusses the challenges faced in this area, including insufficient technical capabilities and market demand, and imperfect incentive mechanisms.
Below is my full translation of the interview.
专访倪江波：如何理解绿色建筑“新增长点”的定位？
Exclusive Interview with Dr. Ni Jiangbo: how to understand the role of green building as a "new growth driver"?
China Environment News: How do you interpret the positioning of green buildings as a "new growth driver" in the Central Economic Work Conference?
Ni Jiangbo: The Central Economic Work Conference urged coordinated efforts to cut carbon emissions, reduce pollution, pursue green development, and boost economic growth and accelerating the green transition in all areas of economic and social development. The positioning of green buildings as a new growth drivers is a concrete reflection of this strategic direction.
As awareness of living environments and quality of life continues to grow, green buildings, valued for their energy efficiency, environmental sustainability, health benefits, and comfort, are increasingly favored by consumers. In response, both national and local governments are actively enhancing policies and frameworks to promote the high-quality development of green buildings. This is particularly evident in government-funded projects, green and low-carbon urban districts, and urban renewal initiatives, where green buildings have become a preferred choice.
Driven by both policy support and market forces, green buildings are propelling the growth of related industries across the entire value chain. This includes upstream sectors such as green building planning, design, and the research and integration of new technologies, materials, equipment, and solutions; midstream activities like green construction, sustainable building practices, and eco-friendly building materials; and downstream operations focused on energy efficiency, water and material conservation, indoor environment management, and energy management contracts. Moreover, the entire lifecycle of building construction and operation is intertwined with green finance, green insurance, and third-party testing and evaluation. From upstream innovation to downstream applications, every stage of the green building ecosystem presents significant business opportunities, offering industry players the chance to tap into vast, untapped markets.
As the world accelerates its response to climate change, the building sector is undergoing a green transformation, with China playing a pivotal role in this shift. With continuous improvements in green building standards, technologies, products, and services, China's green building industry is becoming increasingly competitive on a global scale. By leveraging international cooperation opportunities such as the Belt and Road Initiative, China can support its green building companies in expanding globally, facilitating the internationalization of related technologies, products, and services. Through these efforts, China has the potential to position itself as a strategic hub in the global green and low-carbon economy.
China Environment News: What is the current status of energy consumption and carbon emissions in China's building sector? How should we assess the role of green buildings in the country's efforts to conserve energy and reduce carbon emissions?
Ni Jiangbo: The building sector is a major contributor to energy consumption and carbon emissions in China. According to the 2023 China Building and Urban Infrastructure Carbon Emission Research Report 《2023中国建筑与城市基础设施碳排放研究报告》by the China Association of Building Energy Efficiency, in 2021, the total energy consumption of the residential building process (excluding infrastructure construction) accounted for 36.3% of the country's total energy consumption, while its carbon emissions represented 38.2% of the nation's energy-related carbon emissions.
Green buildings are high-quality structures that, throughout their entire lifecycle, conserve resources, protect the environment, reduce pollution, and offer healthy, functional, and efficient spaces for occupants. They strive to achieve the greatest possible harmony between humans and nature, making them a vital tool in advancing energy conservation and carbon reduction within the building sector. As such, green buildings play a critical role in national energy-saving and carbon-reduction efforts. In a broader context, buildings that meet energy-saving standards, particularly those classified as ultra-low energy buildings, near-zero energy buildings, low-carbon buildings, and zero-carbon buildings, are all integral components of the green building movement.
Green buildings, photo by Danist Soh via Unsplash
From the perspective of a building's full lifecycle, green buildings integrate appropriate technologies, equipment, and materials to efficiently manage energy resources at each stage, including planning, design, construction, and operation. This involves using high-performance building materials, such as insulation and thermal-resistant materials, as well as maximizing the use of renewable energy sources. These energy-efficient green technologies improve the building's overall energy performance. Throughout the entire process, from material selection and construction to operation and demolition, green buildings also adhere to low-carbon and environmentally friendly standards. By incorporating more efficient green low-carbon technologies, increasing the use of renewable energy, and promoting the widespread adoption of green low-carbon building materials, significant reductions in carbon emissions from buildings can be achieved.
Furthermore, promoting green buildings can accelerate the green and low-carbon transition, as well as the industrial upgrading, of the construction sector. This shift encourages companies within the building industry chain to actively invest in the research, innovation, and application of green low-carbon technologies. As the demand for green buildings rises, these companies will be compelled to steadily strengthen their competitiveness in the energy-saving and low-carbon sectors, driving the entire industry toward a sustainable, green transition.
China Environment News: China has a vast number of existing buildings, making energy-saving renovations and upgrades to the building sector crucial for short- and medium-term energy conservation and carbon reduction efforts. How can energy-saving renovations of existing buildings be effectively integrated into urban renewal projects?
Ni Jiangbo: Energy-saving renovations of existing buildings play a vital role in the success of urban renewal projects. According to publicly available data, since 2019, energy-saving renovations have been carried out alongside the renovation of outdated urban communities, covering a total area of 423 million square meters. To fully understand the connection between energy-saving renovations and urban renewal efforts, there are five key areas where integration must be achieved.
First, the integration of renovation goals. Urban renewal projects primarily focus on the functional transformation of aging areas within old urban districts, which often suffer from mismatched functions, low utilization efficiency, and poor environmental quality. These projects typically involve the renovation of old residential communities, industrial zones, street blocks, and urban villages. On the other hand, the target of building energy-saving renovations is mainly existing buildings, which make up a significant portion of these older urban areas.
Second, the integration of planning and design. As China is shifting from a framework for "controlling both the volume and intensity of energy use" to one for "controlling the total amount and intensity of carbon emissions," the control requirements for energy consumption and carbon emissions at different scales—such as for cities, urban districts, communities, and buildings—will also become clearer during the planning and design process. Since existing buildings are a key part of old urban districts, urban renewal planning must fully consider the energy-saving and carbon-reduction renovation needs of these buildings in order to achieve the overall targets of total amount and intensity of carbon emissions for the city.
Third, the integration of objectives. Urban renewal is not about large-scale demolition and reconstruction, but rather about optimizing the existing buildings, improving functionality, and enhancing quality based on actual needs. Similarly, the energy-saving renovation of existing buildings is not merely about applying technologies or compromising the quality of residents' living conditions for the sake of reducing energy consumption. Instead, it focuses on improving building structures and supporting facilities while using energy-efficient and green technologies and products tailored to local conditions, all aimed at achieving energy conservation and carbon reduction goals.
Fourth, the integration of incentive policies. The policies supporting energy-saving renovations of existing buildings and urban renewal are largely aligned. These typically include financial subsidies, tax reductions, green finance, and other preferential measures designed to lower renovation costs and stimulate market vitality.
Fifth, the integration of the participation of different sides. Non-governmental capital plays a crucial role in both energy-saving renovations of existing buildings and urban renewal projects. Both require a diversified renovation model driven by government guidance, market leadership, and social participation to move forward.
China Environment News: Green buildings cannot thrive without the support of technological innovation. In recent years, what technological breakthroughs and innovations has China made in the field of green buildings, and how can these advancements impact the development of green buildings?
Ni Jiangbo: In recent years, China has made significant breakthroughs and innovations in the field of green buildings. Through architectural design optimization, such as adjusting building orientation and window placement to maximize natural light and ventilation, various energy-saving and renewable energy technologies have been integrated to achieve near-zero carbon emissions. Furthermore, the adoption of digital design, intelligent manufacturing, modular construction, and smart operations has enhanced construction efficiency and quality while minimizing carbon emissions during the building process. By incorporating photovoltaic systems, energy storage batteries, and electric vehicle charging infrastructure, local photovoltaic power consumption is promoted, improving the safety, stability, and reliability of the power grid. These advancements are essential in achieving both zero-carbon buildings and zero-carbon electricity.
With ongoing technological progress, we believe that more innovative technologies and solutions will be applied to the green building sector, injecting new vitality into its development.
China Environment News: What is the current state of green building development in China? What challenges remain, and how can the industry be further fostered?
Ni Jiangbo: In recent years, China has made strides in green building development. Over 10 national and industry standards, including the "Green Building Evaluation Standard," have been issued, and the basic requirements for green buildings have been incorporated into mandatory regulations. The scale of green buildings has continued to expand, with the total area of completed green buildings in urban areas reaching approximately 11.85 billion square meters by the end of 2023. In 2023, newly built green buildings accounted for 94% of the total new construction area in urban areas, highlighting the strong momentum behind green building development in China. Additionally, local governments have actively supported the growth of green buildings through various policies, such as offering subsidies, providing green finance, and increasing housing provident fund loan limits.
However, the challenges we face are also quite apparent. For instance, there is a need to strengthen technical support capabilities, requiring more research and technological innovation to develop a technical system that is suited to regional characteristics. Market demand remains insufficient; the incremental cost issue of star-rated green buildings persists, and consumer awareness and acceptance of green buildings are still limited, resulting in market demand lagging behind the growth of green buildings. The incentive mechanism is also lacking, as there is insufficient, systematic policy support and economic incentives to drive the development of green buildings. Additionally, some green building projects still struggle with the issue of "prioritizing design over operation," and the quality management system for the entire green building process needs to be further improved.
I believe that fostering the development of the green building industry requires efforts from multiple fronts. We should strengthen technological innovation and research and development, encouraging collaboration between enterprises, universities, and research institutions to drive the R&D and innovation of green building technologies. It is also essential to improve management and incentive policies, such as offering tax breaks, financial subsidies, floor area ratio rewards, and incorporating the purchase or rental of green buildings into green consumption initiatives as economic incentives. Additionally, enhancing the green building standards system, evaluation frameworks, and quality management throughout the entire process should be prioritized. Furthermore, more promotion of green buildings will help raise public awareness and acceptance, motivating consumers to purchase or use green buildings.