Page 216 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
September 2018. The rail system finally allows for a one- offices, and other large public buildings, must meet the
hour across the three cities. According to Alvin Yip, the green building standards of China’s 3-Star Rating System
President of Capital Markets Greater China at Cushman GBEL (The Green Building Evaluation Label). This system is
& Wakefield, “The new high-speed rail link has created administered by the Ministry of Housing and Urban-Rural
significant opportunities for new business and real Development (MOHURD) and evaluates projects based
estate investment across the GBA’s core cities as well on six categories: land, energy, water, resource/material
as a number of other rapidly evolving locations within efficiency, indoor environmental quality, and operational
the region.” Yip advises that the three areas that will management (ITA). National plans, policies and targets
reap the greatest benefits will be the areas surrounding are important drivers of investment and improvement.
Shenzhen’s Futian Station, Guangzhou’s South Railway Still, significant challenges remain in implementation at
Station, and Hong Kong’s West Kowloon terminus. Several a city and district level, such as training, business models,
well established investors have already deployed capital financial solutions and access to information.
near the Guangzhou South Railway Station area. Notable
2018 transactions included Lee Kum Kee’s block purchase One Chinese sector with a significant foreign presence
of “Vanke World Meets” for 1.2 billion yuan (Yip). is in consulting on green building designs, as well as on
energy saving strategies for both new and old buildings.
Green Construction Both of these sectors require skills and expertise that are
not yet fully developed in the Chinese domestic market
The World Green Building Council (WorldGBC) and can help lower energy intensity in line with the 13th
and China Green Building Council (China GBC) have Five-Year Plan. More than 95 percent of existing buildings
announced a partnership to collaborate efforts to increase in China are not green buildings, creating potential
green buildings around the world and reduce global opportunities in retrofitting old buildings with green
greenhouse gas emissions. This partnership is hugely building technology (ITA). For example, retrofitting is
significant as China is the largest building construction necessary if China is to meet its green numbers. Most
market in the world, with up to 2 billion square meters buildings that were built in China before 2000 are non-
constructed annually, accounting for nearly half of new energy efficient. Their external walls merely maintain the
construction globally in the coming decade. China is structure and their chosen material rarely conforms to
embracing green building at an accelerated pace with any form of energy savings. The application technology
523 million square meters of buildings certified green of building energy savings in China are numerous and
by China GBC’s Three Star green building rating system involves diverse opportunities such as building equipment
alone, making it one of the largest markets in the world energy savings, building green lighting, and operation
for certified green building (World Green Building management optimization. In order to succeed in its
Council). By signing with the World GBC, China’s efforts green endeavors, China will need know-how from outside
will receive outside support and aid, and could further experts. Public-private partnerships continue to be one of
help to reduce the country’s greenhouse gas emissions the most effective ways of overcoming these barriers.
— emissions which account for around 30 percent of all
global emissions, the largest in the world. China GBC will There is a major focus now on constructing
cooperate with national Green Building Councils around ecofriendly or green buildings as a result there is a
the world to leverage global practices and join in the unique opportunity for companies specializing in green
World GBC’s movement in promoting the global uptake building to win contracts and project in Chinas massive
of green buildings (China Partners). construction industry. The value of the industry rose from
US$717.71 billion in 2016 to a forecasted US$848.92 in
Increasing urbanization and national commitments to 2018. The demand for modern, innovative buildings also
conserve resources and reduce greenhouse gas emissions provides investment opportunities in the wood, HVAC,
drive China’s steady commitment to expand the green plumbing, insulation, lighting and windows are doors
portion of its massive construction market. In 2014, the sub-sectors as demand increases and China allows more
State Council Green Building Action Plan mandated that foreign investment (ITA).
public buildings such as schools, hospitals, museums,
stadiums, and affordable housing, as well as any single
building area over 20,000 square meters, such as airports,
railway stations, hotels, restaurants, shopping malls,
216
September 2018. The rail system finally allows for a one- offices, and other large public buildings, must meet the
hour across the three cities. According to Alvin Yip, the green building standards of China’s 3-Star Rating System
President of Capital Markets Greater China at Cushman GBEL (The Green Building Evaluation Label). This system is
& Wakefield, “The new high-speed rail link has created administered by the Ministry of Housing and Urban-Rural
significant opportunities for new business and real Development (MOHURD) and evaluates projects based
estate investment across the GBA’s core cities as well on six categories: land, energy, water, resource/material
as a number of other rapidly evolving locations within efficiency, indoor environmental quality, and operational
the region.” Yip advises that the three areas that will management (ITA). National plans, policies and targets
reap the greatest benefits will be the areas surrounding are important drivers of investment and improvement.
Shenzhen’s Futian Station, Guangzhou’s South Railway Still, significant challenges remain in implementation at
Station, and Hong Kong’s West Kowloon terminus. Several a city and district level, such as training, business models,
well established investors have already deployed capital financial solutions and access to information.
near the Guangzhou South Railway Station area. Notable
2018 transactions included Lee Kum Kee’s block purchase One Chinese sector with a significant foreign presence
of “Vanke World Meets” for 1.2 billion yuan (Yip). is in consulting on green building designs, as well as on
energy saving strategies for both new and old buildings.
Green Construction Both of these sectors require skills and expertise that are
not yet fully developed in the Chinese domestic market
The World Green Building Council (WorldGBC) and can help lower energy intensity in line with the 13th
and China Green Building Council (China GBC) have Five-Year Plan. More than 95 percent of existing buildings
announced a partnership to collaborate efforts to increase in China are not green buildings, creating potential
green buildings around the world and reduce global opportunities in retrofitting old buildings with green
greenhouse gas emissions. This partnership is hugely building technology (ITA). For example, retrofitting is
significant as China is the largest building construction necessary if China is to meet its green numbers. Most
market in the world, with up to 2 billion square meters buildings that were built in China before 2000 are non-
constructed annually, accounting for nearly half of new energy efficient. Their external walls merely maintain the
construction globally in the coming decade. China is structure and their chosen material rarely conforms to
embracing green building at an accelerated pace with any form of energy savings. The application technology
523 million square meters of buildings certified green of building energy savings in China are numerous and
by China GBC’s Three Star green building rating system involves diverse opportunities such as building equipment
alone, making it one of the largest markets in the world energy savings, building green lighting, and operation
for certified green building (World Green Building management optimization. In order to succeed in its
Council). By signing with the World GBC, China’s efforts green endeavors, China will need know-how from outside
will receive outside support and aid, and could further experts. Public-private partnerships continue to be one of
help to reduce the country’s greenhouse gas emissions the most effective ways of overcoming these barriers.
— emissions which account for around 30 percent of all
global emissions, the largest in the world. China GBC will There is a major focus now on constructing
cooperate with national Green Building Councils around ecofriendly or green buildings as a result there is a
the world to leverage global practices and join in the unique opportunity for companies specializing in green
World GBC’s movement in promoting the global uptake building to win contracts and project in Chinas massive
of green buildings (China Partners). construction industry. The value of the industry rose from
US$717.71 billion in 2016 to a forecasted US$848.92 in
Increasing urbanization and national commitments to 2018. The demand for modern, innovative buildings also
conserve resources and reduce greenhouse gas emissions provides investment opportunities in the wood, HVAC,
drive China’s steady commitment to expand the green plumbing, insulation, lighting and windows are doors
portion of its massive construction market. In 2014, the sub-sectors as demand increases and China allows more
State Council Green Building Action Plan mandated that foreign investment (ITA).
public buildings such as schools, hospitals, museums,
stadiums, and affordable housing, as well as any single
building area over 20,000 square meters, such as airports,
railway stations, hotels, restaurants, shopping malls,
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