Analysis of the Chinese Green Building Market

Transcription

1 Alcimed study Analysis of the Chinese Green Building Market Publication: April, 2012 Redactor: Vincent Pessey Publication Director: Pierre Gadrat 57 bd de Montmorency Paris Tel: Fax:

2 Company presentation Corporate ALCIMED Founded in 1993, ALCIMED is a French consulting company specialized in life sciences (food, biotech, health), chemicals, materials, energy, aeronautics, space and defense. Marketing & Communication Corporate Strategy Research & Development At the interface between science and business, ALCIMED s role consists in helping R&D managers, sales & marketing directors, business unit managers and corporate management to solve problems and translate ideas into practice. More than just advising clients, Alcimed helps them move their projects forward and develop their business. ALCIMED provides decision-makers with ongoing assistance with positioning and development choices, helping them seize opportunities (emerging markets, technology changes) and adapt to threats (changes in regulations, new competitors, etc.). ALCIMED s clients range from start-ups to public institutions and major manufacturers. Alcimed offers a generalist team of highly skilled graduates, divided by sector and able to assume missions in various subjects in sales & marketing (market research, targeting new needs, new product positioning...) and strategic issues (strategy development, research and evaluation of acquisition targets, organizing an activity, design / evaluation / deployment of public policy...). ALCIMED s offices are based in Brussels, Cologne, Lausanne, London, Lyon, Paris, Princeton and Toulouse. The objective of Alcimed is to develop a new brand synonymous with excellence and build a team of 1000 people. Activities: Pharmaceuticals, Aerospace, Chemicals and materials, Building Market, Public Policies, Agrifood, Energy, Private Equity. 2

3 A four step methodology Methodology 1 Literature Review Scientific publications Market & Technical databases Espacenet, WIPO, Scopus, Technical & economic literature Internet ALCIMED studies are performed through our 4 main steps methodology. Consist in gathering the whole available information connected to the studied issue Patent about isolation, solar energy, energy efficiency, Lecture and presentations of China academy of building research, topenergy, chinagb, csus-gnrc, 2 Interviews Market Companies Regulatory Authorities R&D Key Players Consist in contacting the key experts related to the subjects carried out in the study Green land group, MOMA, Shenzhen green building council, Beijing Urban Planning Institute China Academy of Building Research, Tsinghua and Tongji University,... Shanghai Development Bank, Institute of Real Estate Development, 3 Analysis Consist in understanding the key elements and findings of the 2 first steps and transform it into opportunities, new needs or strategic issues thanks to a deep analysis of all the gathered information Information computing Qualitative vs quantitative information Literature vs interviews Brainstorm with ALCIMED experts 4 Synthesis Consist in writing down the previous conclusion of the analysis after a extraction of the very key elements Report redaction 10 points summary 3

4 Table of content Tables Alcimed 10 Points Summary 8 Green Building in China 12 Definitions 13 Definition of Green Building 14 General Background 16 Regulation Aspects 17 Timeline of Regulation in China about Green Building 18 Phase 1: Before 2005, Preparatory Steps 19 Phase 2: , Official Launch 20 Phase 3: , Full-Speed Development 21 Phase 4: After 2015, the Future Development 22 Standards and Certifications 23 Introduction to the Green Building Label 24 Statistics on the Green Building Label 29 Local vs National Certifications 30 Operation and design labels evolution 31 One to three stars projects evolution 32 Public vs Residential 33 Geographic distribution 35 Future projects 36 Comparison with other labels in China 37 Foreign Evaluation Systems 38 LEED s Popularity 39 Comparison LEED vs Green Building Label 40 Prospective for LEED vs Green Building Label 42 4

5 Table of content Tables Market Aspects 43 Drivers 45 Reduction of costs 46 Increase of Potential Spaces 47 Manufacturers Supporting Green Construction 48 Constraints 49 Housing Prices 50 Uncertainty about Preferential Policy 51 Biased Comprehension of Green Building 52 Actors 53 Chinese Actors 54 International Actors 55 Perspective 56 Contact 60 Appendices 61 Green Building project 62 Label Items

6 The Chinese green building market in 10 points Summary In 2006, motivated by the urgent need to reduce energy consumption, China has defined the concept of green building, which values the conservation of resources and thus started a full-speed development. Chinese green building is encouraged and guided by government. The Green Building Label management office is in charge of the Green Building Label evaluation and certification according to three-star evaluation system. Chinese government has conceived some preferential policies (financial help, property tax, etc.) to promote the implementation of the green building evaluation system but they have not notified. In that case, local government s supportive policy ensures the effect of implementation. According to statistics, a concentration of declaration number in two-star projects and a domination of public buildings in threestar projects have been observed. Among the foreign evaluation systems, LEED is the most competitive one because it is efficiently promoted and easy to implement. Thanks to the local benefits, Green Building Label as a new-born system should take the lead over LEED. The Chinese green building market is motivated by the abundant construction plans stimulated by urbanization in acceleration, the urgent need to reduce energy consumption, the reduction of incremental cost, the consumers environmental awareness and the active participation of constructors who are mainly oriented by profits. However, the development of green building will also be impeded by limited mastery of green conception and technology, temporary lack of preferential policies and the conflict between unaffordable housing price and incremental cost of green building. According to the current characteristics, the next step for Chinese green building could be: a spread to the middle and west China a spread to town and village a generalization (green building applied to more building types) The current percentage of green building in new construction is about 1% and the declaration number is exponentially increasing. The green rate could increase to 10-20% in 2020, which indicates a great potential market. The renovation, whose focus is mainly in northern area, is also an important part of green building industry. 6

7 Examples Regulation Timeline Green Building in China Since 2006, China is speeding up its green building industry through a 4 phases program. Preparatory Steps Official Launch Full-speed Development Next Steps Phase 1: Before 2005 Trace of history Phase 2: th Five-year Plan Phase 3: th Five-year Plan Phase 4: After 2015 September 2004 January 2006, 2008 October Creation of the national award for the innovation of green building 2006: Evaluation standard of green building 2008: China green building management office Listed as strategic emerging industry in the national plan Mandatory implementation of the evaluation standard of green buildings (anticipated) The Green Building Label (3/5) Standards and Certifications The Green Building Label criterias consist in six catalogues of Checklist and compositive index system which differs on residential and public buildings. National funding for technology research for green building Green Building Label for Residential Building 9.20 million RMB in billion RMB in Green Building Label for Public Building 27 7

8 Examples Positive Aspects Positive vs Negative Aspects Market Aspects The Chinese green building market is influenced by both positive and negative factors and the opportunities overweight the uncertainties in an overall view. Drivers Downward trend of incremental cost Consumers rising environmental awareness Limited mastery of green conception and relevant technology Acceleration of urbanization stimulates abundant construction plan Green Building Market Statistics One to three stars projects evolution Support from the Government-mandated need to reduce energy consumption Constructors thriving spirit of entrepreneurship and pursuit of profit Green Building Label project evolution according to number of stars Conflict between unaffordable housing price and incremental cost of green building Standards and Certifications In the different Green Building Label projects the two-stars projects record the greatest growth rate. Observation There are 21, 54, 38 Green Building Label projects for 1, 2, 3 stars, representing 18.6%, 47.8%, 33.6% respectively 11 Temporary lack of preferential policies Constraints 3 stars 2 stars 1 star There is an obvious trend of concentration in two-star projects 2 stars projects have the biggest growth rates star 2 stars 3 stars

9 Interested? Order Information Document Type: Market Study Date Published: July-2012 Format: Full study: PDF Pages: 78 M. Vincent PESSEY Call us! Head of Construction Market Studies