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"The potentional for development in China is fantastic. There is nothing parallel to this in the history of mankind and that's the main reason that I am here…to be part of this."
- Silas Chiow, SOM

"We've achieved in 10 years in China what it took the U.S. 50 years to get to."

- Rob Watson,
American-Sinotech

"In one year, the total volume of new building construction in Shanghai alone surpasses 20 million square meters. This amount is equal to the construction volume of all of Europe."
- Fei Chunlu,
China New Town Holdings


A sea of cranes at a typical
development site in Qingdao

"There are more cranes here in China than there are buildings in Australia."
- Marcus Tehan,
Jones Lang LaSalle

"Chinese projects are massive. A community can be as large as 180,000sqm. Now, a single building can have 180-250,000sqm of floorspace."
- Wang Hong, EMSI



China adds 2 billion square meters of new buildings every year - equivalent to about 80,000 new skyrise buildings annually.

In 2007, China built over 11 million housing units, more than the US has built since the year 2000.
- Jean Rogers, Arup

China is looking to urbanize 400 million people over the next 12-20 years. This requires 1.5 billion sqm of space…just for residential housing.
- David Nieh, Shui On Land

There are over 161 cities in China with over 1 million people. The next level of development is towns and villages of about 250,000 people.
- David Nieh, Shui On Land

Over the next 20 years consumer spending on housing is forecast to grow an average of 12.7%/yr, the fastest of any consumption category.

In 2005, 9% of consumer spending was on housing & utilities and this is forecast to grow to 15% by 2025.


Half-built and already
on the market



“If you’ve got a developer who has a foreign investment partner then you’re likelihood of doing green business is very high because the foreign investment partner is going to say ‘this is how we want to build here… this is what we want to put our money into’. You bring in the western expertise and the Chinese developer and they make it happen together.”
- James Heinrick,
Roggeo Design

"I feel the opportunity of making China green is more challenging but also more interesting and I feel that it will happen faster in China because the construction and resource costs in China are much lower than the West."
- Silas Chiow, SOM



Construction costs in China can be as much as 50% lower.

A steel building in Beijing costs about 9,000RMB/sqm but a regular concrete building will just cost 5,000RMB/sqm.
- Wang Hong, EMSI

An average office building in Beijing costs 6,000RMB/sqm to build but Accord 21 [China's 1st truly green building] only cost 5,400RMB/sqm.
- Jin Ruidong, NRDC
- Jin Ruidong, NRDC


Inside the Accord21 Building, China's first truly green building


 

 
HOW THE CHINESE INDUSTRY WORKS

The World Bank estimates that between now and 2015 roughly half of the world's new building construction will take place in China. With over 2 billion sqm of floorspace built every year there is enormous opportunity for green construction. According to EMSI, the number of LEED-certified projects in China is growing at over 130% annually and there are now roughly 4 million m2 of LEED-rated construction.

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Issues and Opportunities

The Chinese green construction industry is fragmented. There is an opportunity to establish local and national green building organizations to train professionals across the entire industry and create networking platforms to share ideas and collaborate. Quality assurance will remain an issue, however. The majority of construction laborers are unskilled, part-time workers from villages outside the cities. These laborers are not trained to install sophisticated building materials or ensure an extremely tight envelope.

Very few new Chinese buildings comply with current laws and enforcement is difficult given the incredible amount of construction. While many focus on improving building standards, providing worker training and expanding inspections and enforcement, some industry experts such as Rob Watson see an opportunity for modular or pre-fabricated construction. These projects would theoretically be easier to quality-ensure since workers would be full-time, trained professionals and inspections could focus on the factories instead of numerous disparate building sites. China's largest residential developer, Vanke, is considering pre-fabricating some of their residential construction.

Architects in China do not have the same level of prestige as in the West. There is little creativity and a lot of copy and paste. Nevertheless, local architects know the Chinese building code regulations as well as the local availability of materials. They can be drivers of sustainability if they are provided with a network of educational opportunities, detailed case studies and best practices, as well as locally available green building products.

Government agencies don't communicate, cooperate, coordinate with each other. This can be daunting for both local and foreign project managers but there may be an opportunity here for local design institutes to manage this communication link because they work with so many different groups - developers, designers, design consultants, etc. They could also potentially function as a central repository of green building knowledge and information.


Advertising LEED around a new
green development in Beijing

The government has a lot more power in China to implement if it so decides. For example, the central government can push a given initiative and the local governments responsible for implementation can push through projects much more quickly than in the West.

The speed of Chinese construction is incredible. Interviewees explained that this is often because of low labor costs, enabling massive numbers of laborers and multiple shifts. While they admitted that coordination was difficult and mistakes were often made, overall project progression was extremely rapid.

Office or public buildings are rarely built and operated by only one company. You will often see one company providing operations and management services but the building itself has multiple owners. This makes implementing energy efficiency measures difficult and also frustrates real estate funds that would like to purchase entire buildings.

Residential developers are not very focused on green aspects or energy efficiency because once a project is completed they are out of the picture. Residential consumers are mainly concerned with location and then exterior aspects such as whether the compound has a pool, etc. There is a need to educate consumers so that they will demand green. All the developers we spoke with stressed that if the consumers demand green then the market will quickly shift in this direction.

Mass-market residential developments represent the largest building market and are in need of sustainable design innovation. These "superblocks" are walled compounds of multiple buildings containing 500+ units. Visionaries are developing new "ecoblock" designs that are open to pedestrian traffic and resource self-sufficient.

Chart 1: Shows that LEED-certified buildings in China are on the rise.
There are now around 4 million m2 of LEED rated construction
in China when there was virtually none 7 years ago.
Source: Ken Langer, EMSI

Chart 2: Indicates this is happening largely through
new construction centered around Shanghai.
Source: Ken Langer, EMSI

The Role of Developers and Local Design Institutes

Foreign access to this industry is limited. Foreign architects can only design the concept phase deliverables of a project and foreign construction companies are not allowed to setup business in China. The key to success of many projects is the quality of the developer and the local Chinese design institute. In China, there are three major architectural deliverables and all need to be stamped by the government. First, a developer will call for architectural bids (usually from international firms) and the Concept is developed by the winning firm. This is then handed off (by the developer) to a local design institute to create the Extended or Schematic Design. Finally, the local design institute creates the Construction Drawings.

James Heinrick of Roggeo Design explains that, unlike in the US, "it is possible to dramatically change the design of a building after receiving approval from the government planning department." James says that in the western world, "the architect controls the entire project…all the design; they control the subcontractors, they control the materials, and they control the final product. In China that’s all done by the developer.” Many green designs have been watered down by developers as they cut project costs. Furthermore, local design institutes, often very large, previously state-owned enterprises spun off from government engineering entities and academic institutions, have less experience designing efficient buildings as their foreign counterparts. When foreign architects hand off their designs the cultural, language and skill differences often lead to errors in architectural details

Some architectural firms, such as SOM, have adapted their project concept deliverables to be much more detailed, reducing the likelihood that their design aspects will be lost when the local design institutes create their deliverables. Other firms, such as Roggeo Design, have created joint ventures with local design institutes in order to participate in a project through to completion. Many firms also create close partnerships with trustworthy developers that agree to have them oversee the project to completion, including leadership over architectural details and any product substitutions.

Green Building and the 5 Stages of Market Transformation

Rob Watson explains market transformation as being comprised of 5 stages. The Chinese green building movement is in the 4th stage and Rob expects that it will be another 2 years before we reach the tipping point.
  Stage 1: Launch demonstration projects to show that green building is possible. China's first truly green building was Accord 21, completed in 2000 in Beijing.

 

Stage 2: Develop standards based on the demonstration projects. In China's case, Accord 21 formed the basis for many of China's building efficiency codes and green standards. Jin Ruidong says that, from 2003, China started seriously talking about sustainable development. Accord 21 showed the government and building industry how to build sustainably and provided baseline performance data. Based on this data, the government developed China's first energy efficiency design standards for commercial buildings.

 

  Stage 3: Launch pilot-scale demonstrations of the new standards. Pilot green projects have been implemented by a number of developers. Some early leaders included Jason Hu and Fei Chunlu. Project examples include Fraser Place in Shekou, Shenzhen and Anting New Town in Shanghai.
  Stage 4: Build the industry through further expansion of projects and the development of industry networks. JUCCCE is one organization helping to establish formal industry networks. Rob Watson believes we are in this stage.
  Stage 5: Full-scale implementation of environmentally preferable construction. To get to the next step, Rob Watson says that China needs to begin consolidating the green building industry. Some aspects of this process include: establishing local and national green building organizations, implementing an aggressive training program that covers all aspects of the industry, creating venues where people can share ideas, and further collaborating on demonstrations that are then actually built.

INTERVIEW CLIPS, click ‘play’ to see the selected clip from the list below:

Qian Defu (钱德福)
Chinese
Government official in Lianyungang, Jiangsu (江苏连云港)
Deputy Director General of the Urban Planning Bureau; Deputy Secretary of the Party Leadership Group (副主任,连云港市规划局党组副书记,规划局副局长,注册规划师)
Lianyungang Development District of Technology and Economy
www.lyg.gov.cn
Qian Defu led the creation of his city's sustainable development plan and is striving to reshape the image of Lianyungang.

 

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Market history and future, looking at the city of Lianyungang.

Hannah Routh
English
Environmental consultant in Beijing (北京)
Managing Director (经理)
ESD Sinosphere (博信国际信息咨询公司)
www.camcoglobal.com
Hannah is working with REEEP to explore carbon finance options for the building industry. She is also working with Jason Hu to ensure his One Planet Living community will be carbon neutral. She is also involved with JUCCCE.

 

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The scale of the opportunities for carbon reduction in China.

Wang Hong (汪洪)
Chinese/English
Green building consultant in Beijing
General Manager (中国区总经理)
Environmental Management Solutions, Inc. (EMSI) (美国EMSI环境管理咨询有限公司)
www.emsi-green.com
Wang Hong heads up EMSI's China operations which have consulted on almost 30 LEED projects in the country.
View Bio

 

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Green building market sectors.

Xu Wei (徐伟)
Chinese
Government official in Beijing (北京)
Director, Researcher (院长 研究员)
China Academy of Building Research (CABR), Institute of Built Environment and Energy Efficiency (中国建筑科学研究院 建筑环境与节能研究院)
www.cabr.com.cn
Xu Wei Works for China's largest research, development, and technology promotion group. Specifically, he focuses of research, development and regulations regarding energy efficiency aspects of buildings and building-integrated technologies.
View Bio

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Three aspects to the building energy efficiency industry.

Qian Yingchu (钱颖初)
Chinese/English
Green building consultant in Shanghai (上海)
District Manager (Shanghai & South China), Director of Projects (区城经理(上海及南中国),兼项目总监)
Environmental Management Solutions, Inc. (EMSI) (上海EMSI环境管理咨询有限公司)
www.emsi-green.com
Qian Yingchu has consulted on a number of LEED project in China and also has experience with training programs for government officials.
View Bio

 

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Strategies for expanding the green building market.

Charles R. McElwee
English
Environmental lawyer in Shanghai (上海)
Counsel
Squire, Sanders & Dempsey L.L.P.
www.ssd.com
Charles advises foreign companies on environmental compliance issues in China as well as the opportunities that have been created by China's environmental situation. He is also involved with JUCCCE.
View Bio

 

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The green building market exists but is comparatively
small and need to focus on mass-market residential.

Rob Watson
English
Environmental consultant in New York
Chairman, CEO & Chief Scientist
American Sinotech
www.american-sinotech.com
A pioneer of the modern green building movement for over twenty years, Rob co-founded the USGBC and helped develop their LEED program. He was also deeply involved in the construction of China's 1st green building, Accord 21. He is also involved with JUCCCE.
View Bio

 

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Getting to the tipping point - the 5
stages of market transformation.

Silas Chiow (周学望)
English/Chinese
Architect in Shanghai
Associate Partner / Director of Business Development (副合伙人,大中国区业务总监,美国注册建筑师)
Skidmore, Owings & Merrill (SOM)
www.som.com
Silas oversees SOM's China business and design. He is also closely affiliated with the Urban Land Institute. SOM did the design for the Xintiandi development in Shanghai and their sustainability design was chosen for Chongming island, off Shanghai (the site of the planned Dongtan Eco-city).
View Bio

 

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Barriers to entry: coordination with the government
and limits on foreign architects and builders.

Dr. Roland Winkler
German/English/Chinese
Sustainable construction consultant in Shanghai (上海)
Project Development Coordinator, Building, Energy & Environment
Econet China
www.china.ahk.de

Roland founded a green building association called Sinobao which initiated a green building expo between Hamburg and Shanghai called Ecobuild Shanghai 2006. He also has a sustainable development consulting firm based in Munich. He is also involved with JUCCCE.
View Bio

 

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Challenges for foreign architects.

Jervy Zhu
Chinese/English
Architect in Shanghai (上海)
Asia Operations Manager (亚洲部执行主管)
GBBN Architects (GBBN建筑师事务所)
www.gbbn.com
GBBN has a strategic partnership with China's largest residential developer, Vanke (万科集团) and Jervy heads up GBBN's China operations.

 

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The role of architects in China.

Wang Hui (王辉)
Chinese
Architect in Beijing (北京)
Partner
Beijing Limited_Design Ltd., Beijing 2529 Architect Studio, 北京有限设计有限公司合伙人,北京二五二九建筑工作室合伙人
www.mima.cn
Wang Hui’s design work has been featured in over 17 domestic and international exhibitions. Recent projects include the Beijing Worker’s Stadium Retrofit and Beijing 798 Art District.
View Bio

 

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There is good reason to have local design
institutes complete detailed schematics.

David Nieh (聂耀中)
English/Chinese
Developer in Shanghai (上海)
General Manager - Planning & Development (总经理-计划及发展)
Shui On Development Ltd. (瑞安房地产发展有限公司)
www.shuionland.com

David is passionate about sustainable development and smart urban planning. Some of his recent Shanghai projects include Xintiandi and the Knowledge & Innovation Community (KIC). He is also involved with JUCCCE.
View Bio

 

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China's urbanization and the role of local design institutes.

Dr. Jean Rogers
English
Green building consultant in San Francisco
Associate Principal
Arup
www.arup.com
Jean is leading Arup's sustainability consulting on the Qingdao Eco Block project with Harrison Fraker and Leon Huang. She is also leading Arup's work with San Francisco's Treasure Island community.
View Bio


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Two differences between sustainable development in the US
and China: utility costs and stakeholder participation.

Charles R. McElwee
English
Environmental lawyer in Shanghai (上海)
Counsel
Squire, Sanders & Dempsey L.L.P.
http://www.ssd.com
Charles advises foreign companies on environmental compliance issues in China as well as the opportunities that have been created by China's environmental situation. He is also involved with JUCCCE.
View Bio

 

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Driving green construction through enforcement vs. market mechanisms

Hideki Hirahara (平原英树)
Japanese/English
Associate in Beijing (北京)
Steven Holl Architects
www.stevenholl.com
Hideki is an architect working on the Modern Investment Group's massive MOMA Linked Hybrid residential complex in Beijing. The 2.3 million sq ft project will have one of the world's largest geothermal systems as well as a waste water recycling plant.

 

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Labor and the speed of construction on Modern MOMA in Beijing.

Roger Wood
English
Green building consultant in London
Associate Director
Arup
www.arup.com
Roger is a civil engineer with Arup and has been the project manager for the Shanghai Dongtan Eco-city project for the past 3.5 years. Dongtan is an 86 sq km (33 sq mi) site located on Chongming island, the 3rd largest in China, and will be the first "truly environmentally and economically sustainable city."

 

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Finding a new economic model…and explaining it to developers.

Stanley Yip (叶祖达)
Chinese/English
Sustainability consultant in Shanghai (上海)
Director, Planning & Development (规划及发展总监)
Arup (Shanghai) (英国奥雅纳工程顾问有限公司 上海分公司)
www.arup.com/eastasia
Stanley is responsible for the development and implementation of Arup's planning practices in Mainland China. For the past 2 years, he has focused on the economics of sustainable urban planning.
View Bio

 

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Need for pilot projects.

Stanley Yip (叶祖达)
Chinese/English
Sustainability consultant in Shanghai (上海)
Director, Planning & Development (规划及发展总监)
Arup (Shanghai) (英国奥雅纳工程顾问有限公司 上海分公司)
www.arup.com/eastasia
Stanley is responsible for the development and implementation of Arup's planning practices in Mainland China. For the past 2 years, he has focused on the economics of sustainable urban planning.
View Bio

 

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Need for a 3rd-party trade organization.

Dr. Zhan Erpeng (展二鹏)
Chinese/English/German
Government official in Qingdao, Shandong (山东青岛)
Chief Planner (总规划师)
Qingdao Urban Planning Bureau (青岛市规划局)
Zhan Erpeng believes restoration and development are equally important. He is working with Harrison Fraker, Leon Huang and Arup to develop the Eco Block project.
View Bio

 

 

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The opportunity for open residential communities.

Li Dexiang (栗德祥)
Chinese
Professor in Beijing (北京)
Professor and Director of the ADRITU Green Architecture Studio (教授 博士生导师,国家一级注册建筑师)
Tsinghua University, School of Architecture (清华大学建筑学院)
www.tsinghua.edu.cn
Professor Li recently completed the eco-design planning for Zhongguancun Science Park in Beijing and the Super Low Energy Demo Building at Tsinghua University.
View Bio

 

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Tsinghua research and development.

Lao Weixing (劳卫星)
Chinese
Government official in Cixi, Zhejiang (浙江慈溪)
Senior Engineer (高级工程师)
Cixi Construction Bureau (慈溪建设局)
www.cixi.gov.cn

 

 

 

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Unique aspects of Chinese construction labor and its impact of quality.

       
How the Chinese Construction Industry WorksThe Role of the Chinese GovernmentAwareness & Attitudes to 'Green'China's Cultural ContextGreen Building Products in China
Explore Video Clips by Interviewee

PAGE LAST UPDATED 04/25/2008