China joins the cleantech revolution
The consequence of this unique approach to state planning is that Chinese cities are positioning themselves as candidates for the global cleantech revolution. As of 2009, city-scale pioneering initiatives included:
- 4 Smart Grid pilot cities
- 13 Electric Vehicle pilot cities
- 21 LED lighting pilot cities
- 40 Master Planned Eco-cities
- a voluntary carbon-trading scheme
- a voluntary Green Building certification program
While so many ambitious pursuits are bound to produce some replicable best-practices, the great bulk of dedicated resources and effort is not being directed to these headline grabbers, rather, energy efficiency has been the target for the most urgent action. As the greatest perpetrator of the inefficient use of energy, buildings have been singled out by government leaders, both municipal and national, as a prime target for reform.
To date, dozens of comprehensive environmental pieces of legislation affecting the real estate industry have been enacted, including commercial and residential subsidies for renewable energy technology, temperature control regulations, energy consumption regulations, environmental performance standards for bank loans, pollution liability insurance systems and mandated environmental criteria for IPO listings on Chinese exchanges. However, enforcement is an endemic problem. Most cities lack the necessary administrative capacity to make many of these initiatives a reality.
Enforcing green initiatives
The central government has tried to address this enforcement issue by creating national programs administered out of Beijing by new or newly-empowered ministries such as the Ministry of Environmental Protection, National Energy Commission, and the National Energy Agency. As recently as June of 2010, Beijing has reaffirmed its intent to achieve its national targets with a new set of centrally administered initiatives.
They intend to accelerate, amongst others:
- the improvement of building codes
- energy price reform
- demand-side energy management regulations
- the promotion of energy efficiency technology
- implementation of monitoring programs
Until this wide range of promised reforms are more specifically articulated and enforced, the driver of the burgeoning green building sector will remain largely the requirements of corporations. Most of the early corporate adopters were either bringing to China internal policies established in foreign markets where CSR was more important, or were trying to act on green initiatives in advance of the belief that the real estate industry would in future be more tightly regulated.
The future for green buildings looks bright
While today, nearly every new prime grade A building in a Tier 1 Chinese city is expected to include at least some environmental elements, tenant demand for green buildings during site selection remains soft, with some newly built office buildings achieving LEED certification. However, there is a growing recognition of the measurable benefits of working in a green building and thus, in 2009, the number of requests that eco-elements be included in office designs increased. Given the rapid rise of LEED certified commercial interiors and owner-occupier energy efficiency programs, as well as a firm expectation that government policy impact will rapidly expand, the future for green buildings in China looks very bright.
Eco-Urbanisation: China's new eco city
China’s pace of urbanization continues to generate deep debate about the future of its cities. Whether the country further “densifies” its already heavily loaded coastal cities, builds a whole new set of hierarchical urban centres, or creates an entirely new model of city living, has become perhaps the biggest challenge to current urban thinking. China sees a big part of its urban future to be in the creation of Eco Cities. While the movement has had a shaky start with well publicised problems of Dongtan, The Tianjin Eco City, more formally the Sino Singapore Tianjin Eco City (SSTEC) is setting new standards – and is already under construction.
Sino Singapore Tianjin Eco City: Case Study
The SSTEC is located on the east of Tianjin near the Bohai bay, and sits partly on a disused beach and partly on a salt pan. The water on the site had been polluted by chemical companies up-river.
The SSTEC is a joint venture between the Chinese and Singapore governments and aims to create a vibrant community of over 350,000 people within 10 to 15 years. The aim is to have sustainability inexorably woven into city life. The project also hopes to have cleaned up the heavily polluted water by the time the new city is ready, allowing residents to eventually swim for the first time in many years – a hugely symbolic feat that would speak volumes about the project’s success.
The development sites have been split up 50/50 between the Chinese and the Singapore government committees; the Singapore side has sold these on to private developers such as the Taiwanese developer FarGlory, but have retained a stake in nearly every one, facilitating a coordinated development approach. This means they can ensure the project’s vision remains undiluted. Partnerships are being forged with other organisations for every other aspect of the city, including education and transport, in order to ensure access to the best resources.
Differentiating through Key Performance Indicators
The SSTEC differentiates itself by very clearly articulating its 22 key performance indicators (KPIs). These include 100% green buildings, 20% renewable energy and 90% green transportation. The KPIs are understood to have been defined in advisory group meetings with both the Singapore and Chinese partners to whom liveability, sustainability and a solid economic base were important as was the inclusion of top recreational facilities.
The project began in 2007 and the Tianjin Eco-City Start-up Area is currently being transformed. The Keppel Land development commenced on 27 November 2009 and residential homes are being pre-sold. A number of Chinese developers that acquired plots within the area have also already begun pre-sales. By 2022 the hope is that 350,000 people will inhabit what will by then be a thriving city. When projects such as the SSTEC are successfully completed, China will have a model to use and evolve in delivering numerous other eco cities across the country.
An overview of Sino Singapore Tianjin Eco City
Five Districts
1. North East District – High tech eco industry & residential district
2. Northern District – Administrative, residential & cultural centre
3. Eco-Core – Marsh reserve, entertainment amenities & eco residencies
4. Central District – Business and residential centres
5. Southern District – Main residential district & film production industry (the current start up area).
The City’s Main Developments
• The Keppel Land development – a 35 hectare-large integrated commercial
and residential development, with a total Gross Floor Area (GFA)
of 680,000 sqm
• The Farglory integrated eco-community development – has a total GFA of
1.4 million sqm, it will include a recreational and entertainment hub
• The Eco-Industrial Park – the park will have ready-built factories housing
light and clean industries from green business clusters
• National Animation Park – a national-level project supported by the
PRC Ministry of Culture