Abtract

In 2015, China emerged as the world’s largest green building nation, its 320 million square meters of certified green building space eclipsing the United States. What took the U.S. more than 20 years to accomplish, China achieved in a decade. And, with the Chinese government’s goal of increasing the proportion of urban green building in new construction projects to 20 percent in 2020, the country is poised to have 50 percent of the world’s green building floor space.

By accelerating adoption of both its national Green Building Evaluation Standard, and international green building programs such as the U.S. Green Building Council’s Leadership in Energy and Environmental Design®, or LEED®, China has placed sustainability at the heart of its urbanization efforts. “We know that we need to look at buildings,” said Professor Wang Youwei, chairman of the China Green Building Council, “because they collectively account for 30 to 40 percent of the entire country’s energy usage. The Chinese government is promoting green buildings aggressively, linking energy efficiency with urbanization.”

In addition to energy efficiency, green building practices are being driven by increasingly stringent environmental regulations, and by owners and tenants demanding healthier neighborhoods and improved indoor air quality. Developers are learning that investing in green building practices can generate higher occupancy rates and enhance their organization’s brand.

Despite these attractive incentives, the market for green building in China is still young, making up less than 1 percent of all buildings on the mainland. Public awareness remains relatively low. Developers worry about higher first cost for construction, and about earning an attractive return on investment (ROI) for their commitment to sustainability.

Fortunately, as green building markets around the world have grown and matured, the ability to capture the benefits of sustainable practices has steadily improved. ROIs now reflect a variety of benefits, including reduced operating costs, improved occupancy and rental rates, enhanced brand—and, for the first time, the positive impacts of better indoor environments on employee productivity and well-being. Developers and building owners in China should feel confident that their future investments in green building will not only “do good” for people, cities, and the environment, but will also “do well” economically.