Recently approved by the General Office of the State Council of the People's Republic of China (国务院办公厅), the National Development and Reform Commission (国家发展改革委), and the Ministry of Housing and Urban-Rural Development (住房城乡建设部) jointly issued the "Accelerating Energy Efficiency and Carbon Reduction in the Construction Sector Program" 《加快推动建筑领域节能降碳工作方案》 (referred to as the "Program"). This program underscores China's commitment to implementing green building standards comprehensively by 2025 for all new urban constructions. It aims to increase the area of new ultra-low-energy and near-zero-energy buildings by over 200 million square meters compared to 2023 and to expand the energy-saving renovations in existing buildings by more than 200 million square meters. Furthermore, the program targets surpassing 55% of electricity consumption in building energy usage and achieving an 8% renewable energy substitution rate in urban constructions.
1. Insights into the Current Timeframe
The timing of this release is significant, marking the latter half of China's 14th Five-Year Plan. Accelerating energy efficiency and carbon reduction in the construction sector is pivotal for meeting the binding targets for energy consumption intensity reduction and facilitating substantial equipment upgrades during this period. Additionally, a growing public awareness and demand for green and low-carbon buildings reflects people's aspirations for a better quality of life.
Digging deeper, the release of this program at this juncture serves two primary purposes. Firstly, it aims to stimulate demand through policy intervention, injecting new impetus into economic growth. With recent data indicating a decline in the sales of newly constructed residential buildings, particularly during January-February, there's a pressing need to bolster the real estate sector. Secondly, it seeks to foster the emergence of new technology industries—innovations in low-energy and ultra-low-energy technologies present opportunities for rejuvenating traditional industries and promoting eco-friendly real estate development.
2. Concrete Steps Forward
While the "Program" outlines 12 key objectives, its implementation mainly revolves around renovating old buildings and upgrading new ones.
Urban-level databases and project reserves will be established for existing buildings to facilitate energy efficiency and carbon reduction renovations. In rural areas, orderly energy-saving renovations promote low-carbon practices and reduce coal combustion. Specific measures include incentivizing residents to phase out inefficient equipment and formulating tailored renovation plans for heating systems. Overall, the focus is on modernizing infrastructure and technology in existing structures.
Regarding new constructions, there's a concerted effort to promote green and low-carbon buildings while enforcing stringent reviews on high-energy-consuming structures. Simultaneously, there's a push to support research and development in ultra-low energy consumption technologies. Setting standards becomes crucial in driving innovation and ensuring industry competitiveness. Legislative updates and substantial policy funding are underway, signaling a potential surge in energy-efficient and sustainable construction industries.
After years of implementing carbon reduction policies, the release of this program is expected to advance technological maturity further. With ongoing advancements in materials and technologies, the cost of ultra-low-energy buildings is projected to decrease, opening up new avenues for market expansion.