Promoting low carbon building industry development through PPP procurement system in China

The main driver of Chinese rapid economic growth over last three decades relies on fixed asset investment and infrastructure development. However, the environmental cost of economic development in China is high, which has significantly damaged China’s economic achievements. The Chinese Central Government has noticed the challenges and it has responded to fix the problem by increasing investment for environment protections particularly, low carbon building development. Public Private Partnership (PPP) is an effective procurement tool for the government to deliver the provision of public services, which has been adopted worldwide. There is a potential for using PPP to incorporate a sustainability agenda and thus support the low carbon building industry development. This paper aims to identify the business case of using PPP to promote and accelerate the low carbon building industry development and concludes that PPP could provide financial incentives for low carbon technologies development and remove economic barriers for low carbon building projects.