China is committed long-term to constructing more energy efficient buildings – opening up opportunities for Australian businesses in the sustainability field.
As the fastest growing global economic power, China is the world’s second largest energy consumer. Half of the world’s buildings constructed between now and 2020 are expected to be located in China and already building-related energy consumption accounts for more than 40 percent of the country’s total energy use. If nothing is done to mitigate the energy situation in China, building-related energy consumption will double by 2020.
Recognising the urgent need to implement green building as a keystone for energy efficiency, China has committed to developing a green building sector that will account for 30 percent of all new construction projects by 2020. This goal, outlined by the Ministry of Finance and the Ministry of Housing and Urban-Rural Development in May, represents China’s first ever announced target for green buildings development.
The 12th Five-Year-Plan (2011-2015) sets out a number of measures the Chinese government will adopt, including increasing policy incentives and improving industry standards, as well as promoting technological progress and the development of related industries. Some other outcomes of the ambitious plan include:
• Green building standards will be applied to all Government-funded public buildings and social-housing programs (buildings) by 2014.
• One billion square meters of energy-efficient floor space will be built by 2015.
• 25 percent of existing buildings in medium-sized cities and 10 percent of those in small cities will be refurbished by 2020 to become more energy-efficient.
In terms of incentives, the Chinese Government will offer a set of subsidies for new buildings that achieve higher levels of green building evaluation certification. A national three-star China National Green building rating system will attract a RMB80 (A$13) subsidy per square metre for Green Three-Star certified buildings, and RMB45 (A$7) subsidy for Green Two-Star standard.
There are a number of key areas where Australian suppliers have the capabilities to meet China’s growing demand for energy-saving construction. Australian capability in architecture and design, interior design, urban planning, landscape design, engineering consultancy and energy efficient consultancy has significant potential to contribute to China’s energy saving and environmental protection targets plan. Opportunities for Australian companies may also exist in the following areas:
• Building integrated renewable energy system
• Energy efficient lighting
• Heating, ventilation and air-conditioning
• Intelligent building management systems
• Water saving systems
• Water proofing systems
• Insulation materials
• High quality architectural paint
• Innovative building products of advance technologies
• Natural building materials of Australian characteristics such as sandstone, clay bricks
Australian companies interested in these opportunities can learn more about China’s green
building development from the Australian Trade Commission’s Advanced Manufacturing & Infrastructure team. As well as providing business advice to companies, the Australian Trade Commission has developed a co-ordinated marketing initiative to introduce capable Australian firms to eco-projects, opportunities and contacts in China.
The marketing platform – a Chinese language directory showcasing Australian clean energy and green-building capabilities – has been promoted to Chinese organisations, local authorities, state-owned conglomerates, energy generators and property managers pursuing major projects in relevant industry sectors.
Companies involved in this initiative are also able to connect via the Australian Trade Commission China’s Clean Energy and Environment (CEE) advisors working on-the-ground in China. The Australian Trade Commission’s CEE advisors provide services ranging including legal, advisory, funding and business matching.
*Pictured above: An example of Australian sustainable design – the EastLink head office in Melbourne. (Courtesy the Australian Trade Commission)
**To make the most of your opportunities in China please contact: Luisa.Rust@austrade.gov.au