China is in the midst of a low carbon transition and is committed to tackling global climate change by setting ambitious targets. It is encouraging the development and adoption of renewable energy and is also exploring ways of resolving issues inherent to conventional fossil fuel markets. China is thus in the process of increasing the renewable ratio in its primary energy mix. Installed capacity in solar, wind, and hydro-power is set to increase further, while restrictions and challenges for the approval of new build coal power plants are growing.
Demand in the construction sector is driven by the rate of housing supply, the upgrading of obsolete infrastructure networks to allow for large-scale urbanisation, and the need to retrofit old buildings.