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Green Building Materials Market, Trends and Opportunities

The Chinese government is shifting toward a greener emphasis of its national development objectives. Its policies are born out of a need to address Chinas energy security, thus regulation relating to green building materials center on energy saving and not other environmental aspects such as toxicity and water conservation. In 1996, a policy was passed regulating the conservation of heating energy for buildings. It states that buildings constructed between 1996 and 2000 should be 50 percent. more energy efficient than buildings built between 1980 and 1981. Buildings constructed after 2005 must increase in efficiency by an additional 30 percent.

 

In April 2008, the standing committee of the National Peoples Congress published a law promoting energy conservation and outlining what products must have enforceable regulations and equipment energy efficiency standards. They typically work with the National Development and Reform Commission to set relevant standards and policies which regulate energy conservation.

 

More recently, Chinas RMB 4 trillion stimulus package, in which up to RMB 3T is to be allocated to construction, includes subsidies and incentives for building developers to use green building materials, particularly those using new technology such as building integrated photovoltaic panels.  

 

The government is also promoting public education and awareness, market participants see as a crucial long term driver. Enforcement is, however, uneven the further away from the tier one cities, the weaker these standards are upheld. Given that China’s construction boom is moving to second and third tier locations, a lack of enforcement may well continue to inhibit the market. Until the regulations are felt, the main impact the government has in the market is through its funding of projects using green technology.

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