Did you know that by creating a building with a “green” design you can save 72% more energy, compared to a standard design? There is a great opportunity happening in China with green energy and building design. Of all the markets in the world, China is one which can leverage green building design more than most others. With the amount of new construction occurring over the next ten years, the country is poised to take advantage of significant overall energy savings, while reducing their carbon footprint. In fact, it is projected the China will add 20 billion square meters of buildings in the next ten years.
Recently, Doug Barry of the United States Commercial Service performed an interview with some experts in China discussing the market and opportunities it presents to businesses around the world. After obtaining certification, building owners who out rent space are able to obtain greater monthly rental income. Suppliers are confronted with new demand for items such as low power LED lighting which fit within prescribed standards.
There are several challenges which make entering into the Chinese green market somewhat difficult. First and foremost, the government standards and approvals change on a regular basis. As these standards change, so does product design and architectural plans. Another challenge is the number of certifying agencies. Although two certification standards seem to be emerging, it has now become the responsibility of the developers to choose the best agency to certify his/her design.
So what does all this cost? On average, it only costs an additional 8% more to build green than to build with a standard design. The low incremental cost, combined with greater rental rates and reduced energy cost, is encouraging the Chinese development community to take a fresh look at building green. Click here to listen to the full interview between Doug Barry and the green building experts in China.