A new study conducted by GBPN on the factors affecting the use of ESCO models for the retrofit of existing buildings in China identifies the main barriers to the development of the Chinese ESCO market and gives best-practice examples of ESCOs globally and investigates the feasibility of introducing those examples to China.
The global building sector accounts for approximately 30% of total energy consumption and CO2 emissions, which translates into approximately 10 billion tonnes of direct and indirect CO2 emissions using CO2 emissions data from in 2011. Given this impact, “green building” and energy efficiency renovation strategies of the 12th 5-year plan plays a key role in supporting the Chinese transition to a low carbon economy.
A new study conducted by GBPN on the factors affecting the use of ESCO models for the retrofit of existing buildings in China, identifies the current barriers to the development of the Chinese ESCO market gives examples of best-practice examples of ESCOs globally and investigates the feasibility of introducing those examples to China.
The report identifies the main barriers for the development of the ESCO market for renovated buildings in China, including insufficient market drivers, poor access to finance, lack of consistent standards, large variance in the quality of ESCO companies due to a low threshold for recognition as an ESCO by the government. The report also recommends a number of other market stimuli and enablers.
Government policies are critical in stimulating the uptake of the ESCO model by providing strong guidance to the market. In China, more emphasis is now being placed on the importance of strong building codes and supporting policy packages including awareness raising, but there is room for further improvement focusing in particular on stimulating the ESCO market.
Full report available in Mandarin only.