Turning grey China green

Alex Pasternack
!urOj;[4C0September 13, 2007

China could save 135 million tonnes of coal a year by making its big buildings energy efficient, but can it convince the developers to go green? Alex Pasternack reports from Beijing.

"Recent Party meetings have seen Hu and Wen waxing on the possibilities of using price, tax and other financial measures to curb waste and promote energy saving in construction."绿色建筑博客i&cJ1Qi)j3b&A

"This is not the White House." Qiu Baoxing, China's deputy minister of construction, stood before a screen showing an elaborate pearl-colored palace at an international building conference last March. "This is the office building of a district government," he said. He was not simply outing another local government official misusing funds to build palatial digs. China's biggest construction official was aiming directly at big building projects that, due to their heavy use of materials and energy, are helping to bankrupt China on an environmental level. According to a recent report by Qiu's office, 95% of existing buildings in China are energy intensive, bleeding energy waste and consuming two or three times as much energy as that in most industrialised countries. And China's incomes—and its buildings—are just starting to grow.
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vm\| C0But as concerns heat up over its energy use and impact on the planet, the international call for sustainable buildings, already being heard in cities across the US and Europe, is starting to spread on the world's biggest construction site.绿色建筑博客n PKv UX4s&e,t
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That call was amplified a few days after Qiu spoke in Beijing by the UN, which released a report noting that the global building sector accounts for 30% to 40% of the world's energy use, much of that manageable through existing technologies like insulation,绿色建筑博客O.v6J"Y*u _
insulated windows, solar shading, humidity-proof facades, more efficient lighting and electrical appliances. And crucially, it noted, such easy energy reductions—what environmentalists call "low hanging fruit"—would dramatically lower the carbon dioxide emissions that are heating up the planet. And China could certainly use some of that, with temperatures breaking records and another summer of extreme weather.绿色建筑博客Q(B;`F y-hw&\Ym$`

Incentives for change
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9URosi9UD*lbg0\0Though greenhouse gases have not always been a priority for China's leaders, the rhetoric is getting stronger. "More work on energy conservation and emissions reduction is urgently required to deal with global climate change," premier Wen Jiabao said recently. No doubt, highly-polluting industries, like coal and concrete factories, play a significant role. But as the Ministry of Construction also noted, the building sector is the country's easiest target for reduction and conservation. If China can make all of today’s big buildings more energy efficient, the ministry concluded, the country could reduce its coal use by 135 million tonnes a year.
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There are of course other reasons for China to turn its grey buildings green; there is a considerable monetary incentive. As oil supplies become harder to reach as half of the country's energy goes into buildings, up from 10% in the 1970s, green design is no longer just a nice or cool thing to do; it's becoming an economic necessity.
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Iw x7Vn7T&B.j2|V,m0That's not just the thinking of Qiu or environmental minister Pan Yue can often be heard extolling the virtues of energy efficiency, two\u003cbr /\>elements at the center of the current Five Year Plan and its vision of\u003cbr /\>sustainable development and a "harmonious society." Recent Party\u003cbr /\>meetings have seen Hu and Wen waxing on the possibilities of using\u003cbr /\>price, tax and other financial measures to promote energy saving in\u003cbr /\>construction and curb waste.\u003cbr /\>But how all the talk on sustainability will turn into a\u003cbr /\>bricks-and-mortar reality is the big green elephant in the room.\u003cbr /\>Eyeing the millions who will pour into China\'s cities in the next\u003cbr /\>decade, the Construction Ministry has ordered new buildings to be 50\u003cbr /\>percent more efficient by 2010 than they were in 2005 and has\u003cbr /\>announced stricter zoning laws for government buildings and energy\u003cbr /\>intensive buildings. But last year, as construction continued at a\u003cbr /\>feverish pace, (two billion square meters of space are built per year)\u003cbr /\>the country lowered its energy consumption per unit of gross domestic\u003cbr /\>product only by 1.2 percent, well short of its four percent a year\u003cbr /\>target.\u003cbr /\>If the government\'s green intent is clear, its success in greening the\u003cbr /\>fast-growing property market has not been so. "China got a late start\u003cbr /\>in green architecture, and with rapid urbanization at the beginning,\u003cbr /\>and inadequate theory behind it, there is still a low level of\u003cbr /\>awareness and an imperfect development of the market mechanisms," says\u003cbr /\>Prof. Kai Yan, the vice chairman of the China Real Estate and Housing\u003cbr /\>Research Association. While 95 percent of buildings approved for\u003cbr /\>construction last year met the government\'s various efficiency\u003cbr /\>standards, Qiu, at the Ministry of Construction, conceded that over 80\u003cbr /\>percent of the finished buildings—covering some 2 billion square\u003cbr /\>meters in area—ignored them outright.\u003cbr /\>"In China there is an openness to new ideas and an increasing will for\u003cbr /\>",1] ); //--> ; one of China's biggest fans of green building is Hu Jintao. The president with a degree in water conservancy engineering from Tsinghua University can often be heard extolling the virtues of energy efficiency, two elements at the centre of the current Five Year Plan and its vision of sustainable development and creating a "harmonious society." Recent Party meetings have seen Hu and Wen waxing on the possibilities of using price, tax and other financial measures to curb waste and promote energy saving in construction.

Bricks and mortar绿色建筑博客'XPq1wPdi,P!WH#i

U$q1UI!q)wU0The real “elephant in the room”, however,  is quite how all the talk on sustainability will turn into a bricks-and-mortar reality. Eyeing the millions who will pour into China's cities in the next decade, the Construction Ministry has ordered new buildings to be 50% more efficient by 2010 than they were in 2005, and has announced stricter zoning laws for government buildings and energy intensive buildings. But last year, as construction continued at a feverish pace, the country lowered its energy consumption per unit of gross domestic product only by 1.2%, well short of its 4% a year target.
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If the government's green intent is clear, its success in greening the fast-growing property market has not been. "China got a late start in green architecture, and with rapid urbanisation at the beginning, and inadequate theory behind it, there is still a low level of awareness and an imperfect development of the market mechanisms," says professor Kai Yan, vice chairman of the China Real Estate and Housing Research Association. While 95% of buildings approved for construction last year met the government's various efficiency standards, deputy minister Qiu conceded that over 80% of the finished buildings—covering some 2 billion square metres in area—ignored them outright.绿色建筑博客\r'qp7yyk
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even longer for developers genuinely to respond to the challenge,"\u003cbr /\>says Nick Thompson, lead partner at architectural Cole Thompson\u003cbr /\>Anders, who has worked on green projects in China. "There is a great\u003cbr /\>growth of development in Chinese cities but this is often targeted at\u003cbr /\>the top end of the market, sometimes requires car-borne transport to\u003cbr /\>make it work, and rarely addresses environmental performance in a\u003cbr /\>serious way."\u003cbr /\>Indeed, despite their grey, hulking visage, some of Beijing\'s biggest\u003cbr /\>properties seem to be bathed in a swash of green. Along with amenities\u003cbr /\>like fitness centers and movie theaters, billboard ads for some of\u003cbr /\>Beijing\'s newest buildings boast their environmental cred, with\u003cbr /\>pastoral images and names to match. But as a recent report by property\u003cbr /\>manager Jones Lange Lasalle found, only a handful of buildings in\u003cbr /\>Beijing and Shanghai actually meet basic sustainability standards.\u003cbr /\>Even the National Stadium, which promises to be eco-friendly has been\u003cbr /\>criticized for its excessive use of steel; others have called Dongtan,\u003cbr /\>the lavish eco-city rising from scratch near Shanghai, more of a\u003cbr /\>greenwash than a green win. The Ministry of Construction was so\u003cbr /\>frustrated by abuse of the word "green" that until this year,\u003cbr /\>officials there would only speak of "sustainable" buildings.\u003cbr /\>Whatever the word, building experts are now struggling to define it.\u003cbr /\>In March Prof. Kai\'s real estate association formed China\'s first\u003cbr /\>Green Building Council (CGBC), which is currently working on adapting\u003cbr /\>the U.S. LEED green building standard for Chinese builders. Beijing\'s\u003cbr /\>first green building, a government office called ACCORD21, is still\u003cbr /\>its only LEED-certified building (though a few more residences are on\u003cbr /\>the way). While the government has already designed its green building\u003cbr /\>standard and developers like Vanke boast in-house policies, LEED, many\u003cbr /\>",1] ); //--> "In China there is an openness to new ideas and an increasing will for change, but this may take some time to translate into legislation and even longer for developers genuinely to respond to the challenge," says Nick Thompson, lead partner at architectural Cole Thompson Anders, who has worked on green projects in China. "There is a great growth of development in Chinese cities but this is often targeted at the top end of the market, sometimes requires car-borne transport to make it work, and rarely addresses environmental performance in a serious way."绿色建筑博客4Q3P"R@2s
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Indeed, despite their grey, hulking visage, some of Beijing's biggest properties seem to be bathed in a swash of green. Along with amenities like fitness centres and cinemas, billboard ads for some of Beijing's newest buildings boast their environmental standards, with pastoral images and names to match. But as a recent report by property manager Jones Lange Lasalle found, only a handful of buildings in Beijing and Shanghai actually meet basic sustainability standards. Even the National Stadium, which promises to be eco-friendly, has been criticised for its excessive use of steel; others have called Dongtan, the lavish eco-city rising from scratch near Shanghai, more of a “greenwash” than a green win. The Ministry of Construction was so frustrated by the abuse of the word "green" that until this year, officials there would only speak of "sustainable" buildings.
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E7Fm!Fv3N0comprehensive, easier to understand, and, perhaps most importantly,\u003cbr /\>globally recognized.\u003cbr /\>"For an international company especially, having a global standard is\u003cbr /\>important," says Rob Watson, a sustainable building expert and\u003cbr /\>Chairman of consultant group American Sinotech. "And soon, people will\u003cbr /\>realize these are better buildings or they perform. better\u003cbr /\>economically. They\'ll think, \'We better get on the bandwagon or we\'ll\u003cbr /\>lose to our competitors.\' And with that, the costs will come down."\u003cbr /\>The initial added costs of green building—about 5 percent more than a\u003cbr /\>regular building—are easily offset by long-term energy savings. Just\u003cbr /\>as crucially are the benefits to be gained from a huge potential green\u003cbr /\>building market. While China may be set to invest 1.5 trillion yuan\u003cbr /\>($194 billion) in green upgrades by 2020, Watson estimates the market\u003cbr /\>for efficient buildings and upgrades will be worth over $55 billion by\u003cbr /\>2012. In Watson\'s view, it is the market, not the government, that can\u003cbr /\>best propel green building in China. Considering that\'s where the\u003cbr /\>money is—and how much money there is to be made—it\'s an idea that\u003cbr /\>makes sense, and cents.\u003cbr /\>One crucial element, undoubtedly, will be the buildings of\u003cbr /\>multinational companies. Flush with investment cash and held to\u003cbr /\>international standards of quality, foreign corporations will not only\u003cbr /\>burnish their image in China by investing in green: they\'ll set a\u003cbr /\>strong example of corporate responsibility, educate the\u003cbr /\>man-on-the-street, all the while upping the ante for future\u003cbr /\>construction and making it cheaper to go green too.\u003cbr /\>In a market like China\'s, such companies could be for green building\u003cbr /\>what the space race was to the digital age. "In the U.S., it was the\u003cbr /\>military and businesses that had the money to invest in cutting edge\u003cbr /\>technologies, and later, consumers reaped the benefits," says Van\u003cbr /\>",1] ); //--> Whatever the word, building experts are now struggling to define it. Kai's real estate association formed China's first Green Building Council (CGBC) in March, which is currently working on adapting the US LEED green building standard for Chinese builders. Beijing's first green building, a government office called ACCORD21, is still its only LEED-certified building (though a few more residences are on the way). While the government has already designed its green building standard and developers like Vanke boast in-house policies, LEED, many agree, represents a true green building landmark for China. It's more comprehensive, easier to understand, and perhaps most importantly, globally recognised.绿色建筑博客3q1e?%UI8vZ%S

:[S8?xf0"For an international company especially, having a global standard is important," says Rob Watson, a sustainable building expert and Chairman of consultant group American Sinotech. "Soon people will realise these are better buildings or they perform. better
Mb(FA j(l0economically; they'll think, 'We better get on the bandwagon or we'll lose to our competitors.' And with that, the costs will come down."

4G!bYm(J!H0The initial added costs of green building—about 5% more than a regular building—are easily offset by long-term energy savings, and just as crucial are the benefits to be gained from a huge potential green building market. While China may be set to invest 1.5 trillion yuan (US$194 billion) in green upgrades by 2020, Watson estimates the market for efficient buildings and upgrades will be worth over US$55 billion by 2012. In Watson's view, it is the market, not the government, which can best propel green building in China. Considering that's where the money is—and quite how much money there is to be made—it's an idea that makes sense.

The bigger picture绿色建筑博客cW qz'h|j'V

6T:D+Dk4K }6H#Y0One crucial element, undoubtedly, will be the buildings of multinational companies. Flush with investment cash and held to international quality standards, foreign corporations will not only burnish their image in China by investing in green: they will set a strong example of corporate responsibility, educate the “man-on-the-street” and reduce the cost of going green.绿色建筑博客 r+K3o8N\,N&tb4c

r9yO(BIh,u3yM0Building Council\'s delegation during its recent trip to Beijing. "I\u003cbr /\>think the same thing is going to have to happen in China."\u003cbr /\>Still, the government can and should play a significant role by\u003cbr /\>continuing to push green in its own buildings, supporting university\u003cbr /\>research and creating financial incentives for private developers.\u003cbr /\>"There needs to be a mechanism that disperses the rising costs among\u003cbr /\>customers/real estate developers and the government," Beijing\u003cbr /\>developer Pan Shiyi noted at a recent building conference, referring\u003cbr /\>to costly green building materials and technologies.\u003cbr /\>\u003cbr /\>One solution would be to answer the country\'s—and the world\'s—call for\u003cbr /\>green building by producing the materials at home. It\'s true that\u003cbr /\>China boasts the world\'s highest production of solar water heaters,\u003cbr /\>and some of its richest entrepreneurs have made their money in wind\u003cbr /\>and solar technologies. But its green materials industry still pales\u003cbr /\>next to that of Germany, Europe, Finland and Japan.\u003cbr /\>\u003cbr /\>But, to invert Michael Jordan\'s tongue-in-cheek slogan, it\'s not the\u003cbr /\>shoes, not just. As important as green materials are, sustainability\u003cbr /\>in China\'s buildings will depend largely on the bigger picture: how\u003cbr /\>are cities designed, how do the green technologies fit together, and\u003cbr /\>how do the buildings improve the livelihood of not just nature but the\u003cbr /\>humans inside them. Meanwhile, on a big scale little steps can really\u003cbr /\>matter. Forgoing home refurnishing by furnishing right the first time\u003cbr /\>could save 30 billion yuan a year, the government says.\u003cbr /\>\u003cbr /\>That\'s a lesson that holds for China as a whole. As it builds its big\u003cbr /\>buildings and cities from scratch, the country must think green at the\u003cbr /\>start. Later renovations may come too late.\u003cbr /\>\u003cbr /\>\u003cbr /\>\u003cbr /\>\u003cbr /\>\u003cbr /\>\u003cbr /\>On 6/7/07, alex pasternack <\u003ca onclick\u003d\"return top.js.OpenExtLink(window,event,this)\" href\u003d\"mailto:alex.pasternack@gmail.com\"\>",1] ); //--> In a market like China's, such companies could be for green building what the space race was to the digital age. "In the U.S., it was the military and businesses that had the money to invest in cutting edge technologies, and later, consumers reaped the benefits," says Van Yang, a sustainability researcher who was part of the US Green Building Council's delegation during its recent trip to Beijing. "I think the same thing is going to have to happen in China." Still, the government can and should play a significant role by continuing to push green in its own buildings, supporting university research and creating financial incentives for private developers. "There needs to be a mechanism that disperses the rising costs among customers/real estate developers and the government," Beijing developer Pan Shiyi noted at a recent building conference, referring to costly green building materials and technologies.
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2U ~'\Z%B9B+``-E0One solution would be to answer the country's—and the world's—call for green building by producing the materials at home. It's true that China boasts the world's highest production of solar water heaters, and some of its richest entrepreneurs have made their money in wind and solar technologies. But its green materials industry still pales next to that of Germany, Europe, Finland and Japan.
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0Ei9}n*J0But as important as green materials are, sustainability in China's buildings will depend largely on the bigger picture: how cities are designed, how green technologies fit together, and how the buildings improve not only the environment, but also the livelihood of the humans inside them. And on a big scale, little steps really can matter. Forgoing home refurnishing by furnishing right the first time could save 30 billion yuan (around US$4 billion) a year, the government says.绿色建筑博客 U*x'_%WL-E
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It’s a lesson that holds for China as a whole. As it builds its big buildings and cities from scratch, the country must think green at the start. Later renovations may come too late.