/ 18 January 2007

China to invest billions in energy-saving buildings

China will invest 1,5-trillion yuan ($193-billion) to make existing buildings more energy efficient by 2020 in a bid to save millions of tonnes of polluting coal, an official said on Thursday.

Warning that energy waste was hurting economic growth, Vice-Minister of Construction Qiu Baoxing said 350-million tonnes of coal could be saved in the next 15 years if existing buildings were renovated to make them more efficient and new buildings adhered to green standards.

But he added that China was already failing to meet existing energy efficiency targets.

”The yearly targets to improve energy efficiency through upgrading existing buildings have not been fulfilled,” Qiu told a news conference. ”Energy-intensive buildings have resulted in huge waste of energy, which has become an obstacle for national economic development.”

Qiu said despite the huge investment in upgrading existing buildings, the country’s priority would be to ensure new construction met efficiency requirements. Half the world’s new buildings between now and 2020 are projected to be in China.

”Most of the construction in the world is done in China,” said Qiu. ”For China to act in compliance with energy efficiency standards is important in the drive to build a resource-saving and environmentally friendly society.”

Inspections showed about 10% of 600 new construction projects were in violation of energy efficiency standards and would have their licenses revoked, Qiu said.

Sustainability vs growth

As China grows richer and its citizens shift from the countryside to the cities, demand for comfortable, heated and air-conditioned housing is growing, straining resources.

China’s leaders have tried to emphasise sustainability and environmental protection after years of breakneck economic growth that has stretched resources and led to widespread degradation.

But the message has been slow to filter down to local officials accustomed to being judged on growth alone, and the central government is still in the process of making policies to encourage green buildings.

”Powerful economic incentive policies are not in place,” Qiu said, adding the government should work out guidelines on subsidies and preferential taxation ”as soon as possible”.

Basic changes such as heat metres, for example, had yet to be widely installed.

”Since a metre-based heat charging system is absent, pricing fails to exert its regulating role in the market,” Qiu said.

Qiu also said the use of renewable energy should be expanded, adding basic measures such as renovating walls and replacing windows would improve insulation and result in energy savings of 50%. ‒ Reuters