Green building investment and financing refers to the investment and financing behavior in the field of green building.
The green funding gap for green building construction in China is still large. To fill it, statistics predict that CNY 3 to 4 trillion worth of yearly investments are needed for the whole period of the 13th Five-Year Plan (2016-2020). According to prediction, of the total needed investment, only the 10% to 15% can come from the government, the rest is made of social capital. Therefore, it is necessary to effectively mobilize private capitals into the field of green building.
In the top-level design of green finance in China, there is a lack of docking schemes for green buildings, albeit efforts have been made in this regard. In August 2016, seven ministries and commissions, including the People's Bank of China, jointly issued the “Guidelines on Building a Green Financial System”, a blueprint for China's green financial development plan. However, they did not clearly point out the specific financing, financing methods and implementation methods of green finance for green buildings.
In summary, China's green building investment and financing sector urgently needs to set clear guidelines to ensure the green development of China's urban and rural construction to achieve the overall development goals of 2050.
The guideline aims to consider all the aspects of the green building financing, from the technical side (use of green technology and energy-saving effects) to the potential benefits and capital risks connected with the investments.
The objective is to embed ecological and environmental considerations (from financial to social externalizations) in the decision making process of the operators from the construction sectors.