Specific market opportunities exists in the development of sustainble cities in China. The purpose of SEC is to act as an advisor for this change, integrating and developing legislation, connecting participants, identifying business opportunities, sourcing and investing locally and overseas.
The sustainable urbanizaton in China is politically driven; the validation to be accredited Eco-district is retained by the NDRC despite the establishment of the National Energy Bureau. The NDRC is planning to liberalize smoothly the electricity market in China. As per the buildings of the eco-district, the China MOHURD implements the strategy of the NDRC and plans the construction of the district. They are 8 pillars in a eco-district: Building, Energy, Mobility, Health, Water, Recycling, Finance and Service. China has a strong interest in foreign eco-city show-cases, but the long term objective is to establish local made affordable smart eco-district and to roll-out the concept to all cities.
The main Institutes of design and research have three major challenges:
- Compile an eco-district design
- Secure the supply of foreign equipment and engineering to fill gaps left from domestic production
- Compete against other cities for best talents and industries
The challenges for Chinese sustainable city development:
- China’s Green building market only represents 8% therefore it is still a minor market for most of the suppliers, contractors and developers.
- Intellectual property is not as protected as in foreign countries, therefore many SMEs which provide most of the equipment for the eco-district are reluctant to completely transfer their technology to access the Chinese market.
- The Chinese eco-district market is starting but some critical foreign know-how can only be delivered to China via an forced Joint-Venture with a local partner.
The qualification and standardization of smart eco-cities and the management process is still under developed in China. This fragmented market offers a major opportunity to support structure and establish a long term relationship with eco-district R&D Institutes, constructors, administrative bodies, and foreign suppliers. On the one-hand, local design and research institutes need better communication with foreign entities, and welcome a third party like SEC in order to facilitate the communication. On the other-hand, foreign institutes and SMEs are looking to enter the market to sell patents, services, engineering and equipment but the communication with Chinese counterparts is still weak. SEC acts as a bridge between China and Europe.