"Green development is a major development plan for China," said Andy To, managing director of USGBC North Asia. "In the future, China's real estate industry will see an increase in the proportion of green buildings as more owners and tenants realize the advantage that green certified real estate projects bring."
Green bonds issued by property developers in China like Swire Properties and LINK RETIS are oversubscribed due to the value they create, according to Mahesh Ramnanujam, president and CEO of USGBC. With increasing policy support and public recognition, the prospect of green bond market in China is optimistic, he said.
In 2017, China's green bond market volume reached 248.6 billion yuan ($35.8 billion), making the country the second-largest green bond issuer in the world, according to the report.
So far, around 3,770 real estate projects in China totaling 228 million square meters have registered for Leadership in Energy & Environmental Design, or LEED certification, an international green building rating system developed by USGBC, the report said.
In the next five to 10 years, the growth rate of the certified projects for existing buildings in China will reach 20 percent, said Ramnanujam.
"As an organization that focuses on improving the sustainability of building design and operation, our goal is to improve energy use efficiency, reduce carbon emission and improve people's experience by influencing more buildings old and new adopting LEED," he said.