Economist and Nobel Prize laureate Joseph Stiglitz once remarked that China’s urbanization is one of the most transformative events of this century. China’s urbanization rate soared from 36% in 2000 to 66% in 2023, rising much faster than developed countries like the United Kingdom and the United States. However, China’s rapid urbanization has brought significant challenges, including severe air pollution, traffic congestion, heat island effects, and increased commuting difficulties. Consequently, China's urban planners are continuously reassessing and refining the direction and approach to urbanization.

“Over the past 40 years, rapid and extensive urbanization, coupled with industrialization and motorization, has had a significant impact on the environment and climate, while also creating energy and health challenges. Following the announcement of the carbon peaking and neutrality goals, known as the ‘dual-carbon’ goals, cities are now driven by a shared aspiration to be clean, comfortable, convenient, prosperous, culturally vibrant, and ultimately, carbon neutral. This vision aligns with the long-standing mission of Energy Foundation China,” stated Dr. Zhigao Wang, the Senior Program Director of Energy Foundation China’s Low Carbon Cities Program.

The concept of “people-centered” low-carbon cities is being widely implemented in China

Globally, the development of major cities began earlier than in China, particularly in countries like the United States, Japan, and Singapore, where Transit Oriented Development (TOD) has been adopted. TOD is a high-density, mixed-use development model centered around public transit hubs, creating compact, walkable communities that integrate work, commerce, culture, education, and living spaces within a radius of 400-800 meters (approximately a 5-10 minute walk). The TOD model improves people’s quality of life and work while reducing air pollution, traffic congestion, and greenhouse gas emissions. It is a “people-centered” approach to low-carbon city development that prioritizes human needs in urban planning.

In 2008, in response to the challenges posed by China’s rapid urbanization, Energy Foundation China began promoting the TOD concept and its implementation across the country, offering financial, technical, and professional support to help develop people-oriented, livable cities. Three examples where TOD has been successfully implemented in China are:

Kunming – In early 2010, Energy Foundation China invited Peter Calthorpe, the creator of the TOD concept, to Yunnan to support the planning of Chenggong New City’s central district. Kunming adopted this planning framework, which later evolved into a detailed plan for implementation, resulting in Chenggong’s central district being selected as one of the first six “Green Eco-Cities” pilot projects in China. 

Chongqing – Energy Foundation China supported the initial research into planning the Yuzhong Peninsula Mountain City Pedestrian System, taking into account the unique topography and residents’ travel habits. This research led to a pilot project in 2011 that transformed several vehicle-centric roads with inadequate pedestrian facilities into walkable, culturally vibrant spaces with convenient public transportation. The project won the top prize at the 2013 National Awards for Urban and Rural Planning and Design.

Shanghai – In 2016, Energy Foundation China supported the release of the Shanghai Street Design Guidelines, promoting human-centered urban development with a focus on safety, sustainability, vitality, and intelligence. This was the first set of guidelines in China to systematically explore humanized urban street design through the “Complete Streets” approach, winning a top prize at the 2017 National Awards for Urban and Rural Planning and Design.

Energy Foundation China has also advanced TOD and human-oriented city pilot projects in Jinan, Zhuhai, Xiamen, and other parts of Chongqing and Shanghai, as well as across Jiangsu and Guangdong provinces. These ongoing efforts have increasingly supported cities and regions to engage in the development of “people-centered” low-carbon cities.

The concepts of TOD and people-oriented urban design have flourished in various pilot cities, receiving policy attention at the national level. In March 2014, China issued the National New Urbanization Plan (2014-2020), officially endorsing “transit-oriented, intensive, and compact development model” for the first time. By February 2016, new policies were issued that mandated future urban development to adhere to principles such as small blocks, dense road networks, and sustainable urban design norms. These policies further advanced the adoption of TOD practices throughout the country.

As the TOD concept gained traction and relevant policies and practices evolved, Chinese urban planners began adopting a more systematic and holistic approach to creating “people-centered” low-carbon cities. In 2017, Energy Foundation China, along with other experts in the field, co-authored Emerald Cities - Planning for Smart and Green China. This publication, combining the realities of Chinese cities with a decade of practical TOD experience, proposed ten innovative principles for “people-centered” low-carbon cities in China, and is widely regarded as a highly practical guide in urban planning. 

Ten Principles of Emerald Cities

Through the joint efforts of various parties, the ten principles of Emerald Cities have now gained broad consensus within China’s urban planning community, leading to numerous successful cases and positive results. For example, in the 39 cities with rail transit systems, the proportion of people served by rail stations increased from 19% in 2016 to 30% in 2020. Additionally, in 36 major cities, the average road network density rose from 5.9 km/km2 in 2017 to 6.5 km/km2 in 2023. These developments have made urban public transportation more accessible, improved conditions for walking and cycling, and enhanced overall urban livability, significantly addressing many of the “urban diseases” of the past.

Addressing challenges in low-carbon city development, and supporting the building of carbon-neutral and livable cities.

The tenth principle in Emerald Cities – “sustainable infrastructure” – remains a challenge in practice, given the need to minimize energy consumption of cities through sustainable infrastructure and renewable energy use. In September 2020, the announcement of China’s “dual carbon” goals underscored the urgency for cities, as major sources of carbon emissions, to accelerate their low-carbon transition. For this reason, the continuous advocacy of “sustainable infrastructure” is significant – only by adapting urban infrastructure to the requirements of carbon neutrality, particularly by maximizing renewable energy supply and use, can the core problems be effectively addressed.

“Energy Foundation China has started discussions with industry experts on addressing this challenge in 2019, with the development of the PEDF system emerging as a key focus at this stage,” said Zhigao Wang.

The PEDF (Photovoltaic, Energy Storage, Direct Current, Flexibility) system is an innovative solution for energy management in buildings. This model transforms a building from merely a place for living to an energy prosumer – capable of producing and consuming its own energy. The system leverages photovoltaic (PV) technology to generate electricity, which is stored in various facilities like electric vehicles or other storage devices (battery, cooling, and heating), and combined with other flexible loads. By integrating these energy sources with Direct Current (DC) microgrids, the PEDF system enables the building to meet its own energy needs while interacting flexibly with the power grid, allowing for the efficient use of wind and solar power, leading to zero-carbon operation. The PEDF system provides a solution for reducing the carbon footprint in the buildings sector, which accounts for 21% of the country’s emissions. This approach also contributes to the broader adoption of renewable energy in urban and rural areas, while ensuring the stable operation of innovative power systems.

Implementing PEDF requires coordination across multiple systems, including PV, energy storage, electrical and electronic systems, electric vehicles, terminal appliances, and power grids. Some remain skeptical about its implementation, and systematic research on the subject is still limited in China. In 2020, Energy Foundation China, in collaboration with a team led by Yi Jiang, Professor of Tsinghua University and academician of the Chinese Academy of Engineering, as well as various industry institutions and enterprises, jointly launched research into the PEDF system’s technical pathways. From planning new power systems for buildings and informing relevant policies and standards to conducting pilot demonstrations, Energy Foundation China has continuously gathered insights and completed the first full series of research on this cutting-edge topic.

 Since 2020, an increasing number of research institutions, universities, enterprises, industry associations, and government departments at both central and local levels have joined the conversation, which has gradually become one of the most discussed topics in the field. In 2023, Energy Foundation China and its partners jointly organized the First China PEDF Conference, bringing together over 300 guests from various sectors. The event showcased the strong interest and confidence in the development of this area.

These discussions and efforts have led to changes at the policy level. In 2021 and 2022, China released numerous central and local policies supporting PEDF development, including Action Plan for Carbon Dioxide Peaking Before 2030, Action Plan for Innovation-Driven Development of Intelligent Photovoltaic Industry, Development Plan for Energy Conservation and Emissions Reduction During the 14th Five-Year Plan Period, and the Urban Rural Construction Sector Carbon Peaking Implementation Plan, among others. These policies have encouraged more local governments and enterprises to adopt PEDF as an innovative model for low-carbon transformation.

“PEDF is a groundbreaking technology for the low-carbon transition and a key step in advancing China’s green energy revolution. Since 2019, I've worked with Energy Foundation China and other industry experts to promote discussions, research, and pilot studies on PEDF. The support from Energy Foundation China has been vital in propelling this work forward,” said Yi Jiang, professor at Tsinghua University and academician of the Chinese Academy of Engineering.

While policies and research lay the foundation on paper, it is through practical application that potential solutions are validated. Since 2020, Energy Foundation China, in collaboration with research teams and partner enterprises, has been implementing a series of national pilot projects for the PEDF system. These projects include Zhuangshang Village in Ruicheng, Shanxi, the Shenzhen Institute of Building Research, and Qingdao International Sailing Center, among others.

In April 2023, the United Nations Development Programme and China’s Ministry of Agriculture and Rural Affairs recognized Zhuangshang Village as one of China’s “zero carbon villages.” In December 2023, the project received the “Energy Transition Changemaker” award at COP28.

PEDF Pilot Project in Zhuangshang Village, Ruicheng County, Yuncheng City, Shanxi Province

Today, with over 200 pilot projects underway across China, research on the PEDF system has reached a pivotal stage in developing mechanism standards and business models for large-scale implementation and industrialization. Energy Foundation China and its partners are actively working to apply this technology to tens of billions of square meters of buildings in China, providing substantial support for the low-carbon transition of cities.

“On the path to carbon neutrality, Chinese cities are pioneering innovative practices and undergoing profound transformations toward clean energy, high-quality development, and social equity. At Energy Foundation China, we are dedicated to advancing pilot demonstrations in carbon-neutral urban electricity and thermal infrastructure, green transportation and public facilities, zero-carbon buildings, parks, and communities. We are also committed to building the institutional frameworks essential for these advancements. I am confident that soon, cities across China will realize the vision of being clean, comfortable, convenient, prosperous, and culturally vibrant – beautiful homes that elevate the well-being of all their residents,” said Zhigao Wang, Senior Program Director of Energy Foundation China’s Low Carbon Cities Program.