China leads the world in planned energy efficiency investments
Johnson Controls survey examines global business priorities, practices, investment plans
Beijing – (21 September, 2010) – More business leaders in China plan to invest in energy efficiency technologies and solutions than any other major country, according to the Johnson Controls Energy Efficiency Indicator (EEI). The survey results provide a look at how executives in China are prioritizing and investing in energy efficiency compared to other regions around the world.
This year’s survey indicates that almost all respondents in China plan to make capital (90%) and operating budget (93%) investments in energy efficiency over the next 12 months. Compared to all countries surveyed this year, those totals far exceed the global average 63% planning to make capital and 70% planning to make operating investments.
In addition, 90% of China respondents said they were paying more attention to energy efficiency now than they were 12 months ago. That may be due at least partly to the fact that 97%, more than in any other major country surveyed, believe that significant legislation mandating energy efficiency and/or carbon reduction is at least somewhat likely to be enacted in the next two years.
Despite the global economic recession, 58% of China respondents said they have invested the same or more in energy efficiency over the past year. Improvements included installing energy-saving glass (67%), upgrading building automation systems (60%) and replacing inefficient equipment before the end of its useful life (55%). Those surveyed said they are also evaluating new clean energy technologies, with 74% -- higher than any other country – considering solar thermal technology for new construction or retrofit projects.
“Leaders in China recognize the benefits of energy efficiency in terms of reducing cost and environmental impact and increasing economic competitiveness, energy security and job creation,” said Michael Harris, vice president and general manager, Global Energy Solutions Asia, Building Efficiency, Johnson Controls. “In our business we help buildings to operate efficiently and profitably, and we see these benefits are being recognized in new markets and regions worldwide.”
Harris noted that there are still several barriers preventing global implementation The most commonly cited barrier to improving energy efficiency in China is uncertainty about the return on investment (34%) and a lack of technical expertise to identify opportunities (20%). In the United States and Europe limited capital availability ranked as the primary barrier, according to this year’s EEI.
“In China and throughout the world, new financing and procurement models are needed to stimulate energy investments,” said Harris. “These models need to be scalable and bring private capital, technical expertise and performance guarantees to the market.”
The Johnson Controls EEI tracks energy management priorities and investment plans among decision-makers responsible for managing commercial buildings and their energy use. This is the first year Johnson Controls has conducted the EEI survey in China. This year's study included 321 respondents from all regions across the county, with a majority working in the manufacturing or construction industries. The China results are part of a global survey of more than 2,800 executives in Canada, China, France, Germany, India, Italy, Poland, Spain, the United Kingdom and the United States conducted in April 2010.
Global EEI survey results will be presented today during an event at the Kuntai Hotel in Beijing. The survey and event is hosted by the Johnson Controls Institute for Building Efficiency, a new initiative of Johnson Controls that provides information and analysis of technologies, policies, and practices for efficient, high performance buildings and smart energy systems around the world. For more information, visit www.johnsoncontrols.com/InstituteBE.
About Johnson Controls
Johnson Controls (NYSE: JCI) is a global diversified technology and industrial leader serving customers in over 150 countries. Our 130,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. For additional information, please visit http://www.johnsoncontrols.com.
About Johnson Controls Building Efficiency
Johnson Controls Building Efficiency is a leading provider of equipment, controls and services for heating, ventilating, air-conditioning, refrigeration and security systems for buildings. Operating from 500 branch offices in 150 countries, we deliver products, services and solutions that increase energy efficiency and lower operating costs for over one million customers. We are involved in more than 500 renewable energy projects including solar, wind and geothermal technologies. Our solutions have reduced carbon dioxide emissions by 13.6 million metric tons and generated savings of $7.5 billion since 2000. Many of the world’s largest companies rely on us to manage 1.5 billion square feet of their commercial real estate.