China will account for about half of the new construction globally in the coming decade. Its floorspace doubled from 1996 to 2011, and Chinese rural buildings alone have as much floorspace as all of U.S. residential buildings. Building energy consumption has also grown, increasing by over 40% since 1990. To curb building energy demand, the Chinese government has launched a series of policies and programs. Combined, this growth in buildings and renovations, along with the policies to promote green buildings, are creating a large market for energy efficiency products and services. This report assesses the impact of China's policies on building energy efficiency and on the market for energy efficiency in the future. The introduction and second chapter of this report introduce the trends in China, drawing on both historical analysis, and detailed modeling of the drivers behind changes in floorspace and building energy demand such as economic and population growth, urbanization, policy. The analysis describes the trends by region, building type, and energy service. The third chapter discusses China's policies to promote green buildings. China began developing building energy codes in the 1980s. Over time, the central government has increased the stringency of the code requirements and the extent of enforcement. The codes are mandatory in all new buildings and major renovations in China's cities, which means they impact construction of a very large number of buildings. In this way, they have been a driving force behind the expansion of China's markets for insulation, efficient windows, and other green building materials. China also has several other important policies to encourage efficient buildings, including the Three-Star Rating System (somewhat akin to the Leadership in Energy & Environmental Design), financial incentives tied to efficiency, appliance standards, a phasing out of incandescent bulbs and promotion of efficient lighting, and several policies to encourage retrofits in existing buildings (in particular, residential buildings in northern China and government buildings). In the fourth chapter, we take "deep dives" into the trends affecting key building components. This chapter examines insulation in walls and roofs; efficient windows and doors; heating, air conditioning and controls; and lighting. These markets have seen significant growth because of the strength of the construction sector but also the specific policies that require and promote efficient building components. At the same time, as requirements have become more stringent, there has been fierce competition, and quality has at time suffered, which in turn has created additional challenges. For example, China has a large number of companies that produce synthetic insulation, but following a series of fires linked to this insulation, the Chinese government pushed to require less-flammable, efficient insulation (such as rock wool or fiberglass). The government is now trying to balance the need for time for the market to adjust production capacity with the need for high-quality, safe products. This creates an excellent opportunity for manufacturers, in particular, international companies, that produce products today that meet these requirements. Next we examine existing buildings in chapter five. China has many inefficient buildings built before stringent requirements for efficiency were more widely enforced. As a result, there are several specific market opportunities related to retrofits. These fall into two or three categories. First, China now has a code for retrofitting residential buildings in the north. Based on the target set by the central government, local governments have targets of the number of buildings they must retrofit each year, and they help finance the changes. The requirements focus on insulation, windows, and heat distribution. Second, the Chinese government recently decided to increase the scale of its retrofits of government and state-owned buildings. It hopes to achieve large-scale changes through energy service contracts, which creates an opportunity for energy service companies. Third, there is also a small but growing trend to apply energy service contracts to large commercial and residential buildings. While most of these contracts today focus on short-term, high impact, single technologies, like lighting, there is growing market and government pressure to deepen and expand these retrofits, and the contracts that implement them. China is the world's leading market for new construction. The Chinese government has set a goal of at least a 40-45% reduction in carbon intensity nationwide by 2020, relative to a 2005 baseline, a target in which buildings play a large role. Policies supporting this goal have created a vibrant and growing market for green building products. This market will mature as it grows, likely with a smaller number of high- quality producers.