Background

The Chinese government has set an ambitious target of doing energy efficiency retrofitting on 150 million sq. m of residential buildings and 65 million sq. m of large-scale public buildings by 2010, and is providing subsidies of 45-55 Yuan per sq. metre to encourage the process in northern hearing area.

The uptake of this subsidy has been slower than hoped. Due to the lack of adequate financing mechanisms, local governments often still do not have the resources to implement retrofit projects on a large scale.

Purpose

To conduct a study of the market-based financing mechanisms and business models available and make expert recommendations to the Chinese government on which ones could best accelerate the uptake of energy retrofits.  

Main Activities

• Study on the current financing mechanism to promote the energy efficiency in existing buildings, develop 2 case studies in large-scale public buildings and residential buildings in the heating zone.
• Barrier analysis on the financing mechanism to promote the energy efficiency in existing buildings.
• Study on the best practice of international experiences to promote energy efficiency in existing buildings, such as European countries.
• Study on the financing mechanism to promote the energy efficiency in existing buildings, propose the financing scheme and business model and promote the energy conservation retrofit market.
• 4~6 workshops to discuss on the financing scheme and business model to promote energy efficiency in existing buildings with related stakeholders including energy experts, heating company, ESCOs, banks, cunsumers, etc.

Expected Impact

• This project aims to change the current situation by proposing the financing scheme and business model based on market, and embody the principle of the investor is the beneficiary from energy saving and GHGs reduction.
• The achievements of this project may widely promote the energy efficiency in existing buildings which may bring the benefit of about 7 Mtce energy saving and 17 Mt CO₂ reduction in the future.
• The ERI/NDRC will continue to use the network of stakeholders established through this project as a mechanism to move energy efficiency policies forward.