International co-operation

To improve the energy performance of buildings in China, the country is involved in several international cooperations, like for example, projects within the EU Switch-Asia Programme (e.g. Low Energy Housing in Sichuan and Shenzhen, China; “Train the trainers”), projects initiated by the German Energy Agency on passive houses, etc.
With regard to appliances, China closely co-operates in Energy Star labelling with the United States Environmental Protection Agency (EPA) and with the Energy Management Corporation of South Korea.

Policy roadmap and targets for ultra-low energy buildings/ retrofits and appliances

In China, governments at different levels publish mid-term plans for general socio-economic development as well as for sector development every five years.
In the building sector, a national “12th Five Year Plan for Building Energy Efficiency“ was recently issued. For the 12th Five-Year Plan (2011-2015) period, the Chinese government sets an ambitious target of saving 3.4 billion GJ through various measures, including a more stringent enforcement of MEPS, green buildings promotion, existing building retrofitting and a heat supply system reform, energy monitoring and management of public buildings, and the adoption of renewable energy use in buildings. There are also mid-term action plans with specific focus. For example, in 2013, a National Green Building Action Plan was issued, which specifies the targets of green buildings development by 2015 and proposes accompanying measures. In 2008, the central government formulated overall targets and an implementation strategy of energy-efficient retrofitting and heat metering reform in the Northern Heating Area.
With regard to appliances, the national “12th Five Year Plan of Energy Conservation and Emission Reduction” specifies the target of higher energy performance of refrigerators, air-conditioners, and natural gas fuelled water heaters by 2015. For example, the energy-efficiency index of the refrigerators should reach 40-46% by 2015 in China (State Council 2012).

Energy agencies

The Ministry of Housing and Urban-Rural Development (MOHURD) is the major governmental body promoting energy efficiency in buildings.
In terms of appliances, the National Development and Reform Commission (NDRC) is the central co-ordination body for the promotion of energy efficiency in appliances. The Ministry of Industry and Information Technology (MIIT) also plays an important role, for instance, by drafting the pre-approved energy efficient product and enterprise list.
The Ministry of Finance (MOF) is the key player in terms of funding for both buildings and appliances.

Energy/CO₂ taxation and emissions trading

China plans to gradually implement a carbon trading system from 2013 onwards with the goal of a nationwide system by 2015 or 2016. In the building sector, energy consumption quota management is being implemented in large-scale commercial and public sector buildings, which serves as a foundation for the development of energy efficiency carbon trading. Besides, the development of the energy efficiency trading mechanism is being promoted at the local level.

Minimum energy performance standards (MEPS) for buildings and equipment

Since 1995, China has introduced Minimum Energy Performance Standards (MEPS) for both new and refurbished buildings in all cities of its four most important national climate zones. The particular technical target is to promote building energy savings by 50%-65%, compared to the conventional building practices of the 1980s through standardizing building indoor environmental design parameters, envelope thermal performance, lighting and HVAC design. Highly notable is the compliance with these MEPSs of new buildings at designing phase: China has recently managed to reach almost 100%.
Furthermore, MEPS for appliances like refrigerators already came into effect in the 1990s and were amended recently to enhance the required energy performance. In contrast to the building MEPS, the compliance rate for appliances is quite low (Zhou 2010). The “primary focus has been on the technical requirements for efficiency performance. Less attention has been paid to monitoring and enforcement with a minimal commitment of resources and little expansion of administrative capacity in this area” (Zhou 2010).

Provision of information

Demonstration projects are one of the most popular instruments in China to explore innovative policies and technologies. For example, between 2007 and 2010, the central government launched the “Double-hundred Projects”, which aimed at implementing 200 demonstration projects of low energy buildings and green buildings.
In addition, information campaigns are also integrated in the “energy efficiency information week” that takes place annually. This information week has been in place since 1990 with different themes every year.
Furthermore, in the field of appliances, the international organization TOP10 China, establishes a web-based platform to provide independent and up-to-date information on the best available energy efficient products in the Chinese market.

For appliances, the mandatory China Energy Labelling System (CELS) was launched in 2005. It is applicable to refrigerators as well as to air conditioners, clothes washers and 20 other product groups. Furthermore, it is based on the coloured arrows design of the European Union’s appliance energy label. However, it uses the numbers 1 to 5 instead of characters A to G. It is managed by the China National Institute of Standardization (CNIS). The mandatory label uses the MEPS as a reference point for the thresholds. Refrigerators not meeting the MEPS will not be labelled, nor even produced (Fridley et al. 2008, p. 6 f). Based on a survey, the Chinese consumers “recognise the energy label and have some knowledge about it” (Zeng et al. 2011).

Mandatory energy performance certificates & equipment labels

In 2008, the Chinese government first issued to introduce a building energy efficiency labelling scheme. Labelling is mandatory for government office buildings and large-scale commercial buildings and building projects that apply for energy efficiency pilots. For residential buildings and small scale commercial buildings, labelling is mostly voluntary. The label includes following indexes: fundamental index, required index and optional index. Among them, the fundamental index and required index are linked to the existing national energy efficiency standards. The fundamental index refers to the energy consumption of heating and cooling per m². The required index includes other mandatory items, such as the building envelope or heating and cooling equipment. The optional index refers to additional indicators, including heating or cooling energy recovery, sustainable energy application etc. The label includes five different energy efficiency levels, which are indicated with a different number of stars. A 1-star building is certified when 50-65% of energy saving compared to a typical building in the 1980s is achieved in the fundamental index and all items in the required index are fulfilled. A 5-stars building is certified when more than 85% of energy saving is reached and the building is able to obtain more than 60 points in the optional index.

Financial incentives for approaching ULEB/ exceeding MEPS

In China, various financial incentives have been set up for improving energy performance in buildings. The measures to be subsidised range from heating metering, energy efficiency retrofit of existing buildings, the establishment of the energy efficiency supervision and management system, to green buildings. For example, in 2012, the central government set up a subsidy scheme, i.e. about 25% of the cost, to push investment to advanced green buildings. With regard to energy efficient retrofitting in cold climate, 15 to 20% of the total retrofitting cost are covered.
In 2012, the central government announced plans to provide explicit fiscal subsidies for consumers to purchase energy-saving appliances, like water heaters, refrigerators and washing machines. In addition, subsidies have also been provided to manufacturing and purchasing energy-efficient lighting products. Consumers receive the subsidies immediately at the retailers. Funding, which totals 26.5 billion Yuan (~€3.3 billion), has been provided for the period from June 2012 until May 2013. This policy is not only supposed to restrict growing electricity consumption in China, but also to boost domestic sales figures.

Promotion of third-party financing

Energy Performance Contracting (EPC) business has grown rapidly in China since the 11th Five Year Plan (2000-2005). The central government has issued a series of measures that define key terms and technical procedures of EPC, provide financial incentives to qualified ESCOs, etc. Furthermore, in 2011, one circular issued by the central government explicitly states the support to EPC in retrofitting existing buildings in public and commercial sector.

Competitions & awards

At the early stage of green building development, the central government set up the Green Building Innovative Award, which aims to reward prominent exemplary projects, technology and products of green buildings, as well as organizations and individuals who make valuable contributions in promoting energy efficiency undertakings and environmental sustainable development.

Public sector programmes

Public sector programmes for energy efficiency have been popular in China. For example, a national ordinance was issued in 2008 to promote energy efficiency in the public sector. Furthermore, energy efficiency labelling is mandated for government office buildings.
Already in 2006, the legal requirement “Energy Efficient Products For Government Procurement” came into force, obligating public organizations (on the national and provincial level) to purchase, when needed, energy-efficient appliances. Therefore, a series of energy efficiency appliance lists have been submitted by the Ministry of Finance and the National Development and Reform Commission (NDRC), where all appliances covered by that scheme are listed. The products should fulfil the following criteria: 

(1) The product is certified by authorised organisations, 

(2) It is a mature and reliable technology, 

(3) The product has a comprehensive supply chain and the manufacturer provides good services, 

(4) The product fulfils the procurement requirements (State Council Office 2007).