The government procurement policy to support green building materials is being expanded.

Recently, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Ministry of Industry and Information Technology issued the "Notice on Further Expanding the Implementation Scope of Government Procurement to Support Green Building Materials and Promote the Improvement of Building Quality" (hereinafter referred to as the "Notice"), which clarifies the further expansion of the policy implementation scope based on the previous government procurement support for green building materials to promote the improvement of building quality.
He Daixin, director of the Fiscal Research Office of the Chinese Academy of Social Sciences' Institute of Finance and Economics Strategy, stated that further expanding government procurement to support green building materials is the result of the continuous improvement of the government procurement system and policies, as well as a substantial measure of more proactive fiscal policies to leverage new investments and new consumption through government initiatives.
The main task of this work is to promote green development in urban and rural construction, using government procurement policies to actively promote the application of green buildings and green building materials, vigorously developing new industrialized construction methods such as prefabricated and intelligent construction, building green buildings, forming a long-term mechanism to support the green and low-carbon transformation in the construction field, leading the high-quality development of the building materials and construction industries, and focusing on building safe, comfortable, green, and smart homes, creating livable, green, and low-carbon cities.
Regarding the implementation scope, the "Notice" mentions that starting from January 1, 2025, the government procurement support for green building materials to promote the improvement of building quality policy will be implemented in 101 cities (districts) including Chaoyang District, Beijing. Projects included in the policy implementation scope include government procurement engineering projects such as hospitals, schools, office buildings, complexes, exhibition halls, convention centers, sports venues, affordable housing, and old city renovation projects, including government procurement engineering projects applicable to the bidding law. It encourages cities implementing the policy to include other government investment projects in the implementation scope.
The "Notice" clarifies that priority should be given to project payment settlement. For engineering projects included in the policy implementation scope, the proportion of project payment settlement should be increased, and the payment proportion for project progress should not be less than 80% of the completed project payment. Promote settlement during the construction process, where both parties to the contract agree to divide the construction period by time or progress nodes, and calculate, confirm, and pay for the completed and undisputed engineering projects within the period. The process settlement documents confirmed by both parties will be part of the completion settlement documents, and generally, there will be no repeated review after completion.
The "Notice" emphasizes strengthening the management of green building material procurement. Building materials used in government procurement engineering projects that are classified as "mandatory" in the "Green Building and Green Building Material Government Procurement Demand Standards (2025 Edition)" should all be procured and used in accordance with relevant standards; those classified as "optional" in the "Demand Standards" can be selected by policy-implementing cities based on their regional location, industrial development, and other actual conditions, with the selected types not being less than 40% of the types of building materials involved in the construction project.
"Specifically, the main tasks mentioned in the 'Notice' are very clear." He Daixin believes that this time the implementation scope for government procurement engineering projects has been clarified, and there are more detailed regulations regarding the quality standards and category requirements for green building material procurement. The priority given to project payment settlement, especially concerning government funding, will play a strong role in promoting the implementation of relevant policies.
The "Notice" emphasizes strengthening policy implementation. The Ministry of Finance, together with the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology, will further strengthen policy guidance and promote the advanced experiences and typical practices of some cities. Provincial financial departments, in conjunction with housing and urban-rural development and industrial and information technology departments, should explore the establishment of incentive evaluation mechanisms based on local actual conditions to ensure effective policy implementation. Relevant regions and departments should strengthen policy interpretation and publicity training, respond promptly to social concerns, mobilize the enthusiasm of all parties involved, and create a good working atmosphere.
He Daixin stated that the policy implementation process involves the work of relevant departments such as finance, industry and information technology, and urban and rural planning. Coordination and cooperation among departments and the exchange of information are very important, and various measures should be integrated to implement comprehensive policies and work together.
"Overall, further expanding government procurement to support green building materials and promote building quality is of great significance." Lin Shuanglin, deputy director of the HSBC Business School at Peking University, stated that this move will help promote green development in urban and rural construction, improve the living environment, and benefit the quality of life of the people.