Photo: Walker Darke
In the heart of Shanghai, the Huashan Hospital has cut its annual carbon emissions by 2,500 tons thanks to a groundbreaking energy efficiency project. Photo: UNDP China
The Huashan Hospital adopted a series of smart, energy-saving solutions related to heating and air-conditioning systems, lighting and boiler operations. Photo: UNDP China
Outdated systems were replaced with high-efficiency chillers, heat pumps and automated fresh air controls that adjust ventilation in real time based on carbon dioxide levels. These upgrades not only improved thermal efficiency but also created a healthier indoor environment for patients and staff. The reduced operational costs also enhance the financial sustainability of public hospitals, particularly in urban centres where energy demand is high.
A new building automation system allows the hospital to monitor energy use in real time and detect inefficiencies early, ensuring resources aren’t wasted. Traditional lighting fixtures were swapped out for LED lighting, immediately cutting down electricity use and improving visibility throughout the facility.
These combined measures have delivered impressive results. Annual electricity savings now reach 130,000 kWh, significantly cutting the hospital’s operational costs and its carbon emissions by 2,500 tons each year. Indoor air pollution has also been reduced by 11 tons annually. Importantly, the hospital expects to recoup its investment in just over three years – proving that decarbonizing the healthcare sector isn’t just good for the planet, but also a smart financial decision.
“Public buildings like hospitals have high energy consumption and carbon emissions,” explains Kang Chunhua, an energy efficiency expert. “This project focuses on energy conservation and emission reduction in public buildings, identifying the key areas for energy savings and emission reductions. These measures will undoubtedly greatly accelerate the achievement of China's dual carbon goals.”
The success of Huashan Hospital’s green transformation was undertaken as part of a broader nationwide programme implemented by the Ministry of Housing and Urban-Rural Development of the People’s Republic of China and UNDP, with funding from the Global Environment Facility (GEF). Through this large-scale programme, over 2,200 public buildings adopted similar energy and cost-saving strategies.
Many hospitals across China have adopted new technologies like solar panels, advanced heat pumps and smart energy management systems. Photo: UNDP China
Extensive energy audits have optimized energy use, while an expanded national database now provides real-time insights into public building energy trends. Photo: UNDP China
For example, at the West Coast Campus of Qingdao University Affiliated Hospital, new building control technologies have improved heating and cooling efficiencies to reduce carbon emissions by 25 percent or 4,375 tons per year. In Beijing, Daxing International Airport has expanded its use of ground-source heat pumps and intelligent lighting, cutting 2,000 tons of carbon dioxide emissions annually. A sports centre in Beijing installed a smart microgrid system, upgraded LED lighting and advanced insulation, reducing emissions by 2,500 tons per year while enabling students to study and train in a more comfortable environment. These projects are proving that small investments in energy efficiency can create a massive impact: saving money, reducing emissions and improving public services.
With over 2,200 buildings now tracking energy performance and nearly 150,000 professionals trained under the programme, extensive energy audits have optimized energy use, while an expanded national database now provides real-time insights into public building energy trends. This work directly fed into China’s national carbon neutrality plan for the buildings sector and helped shape China’s wider carbon peak and neutrality goals, embedding best practices on energy efficiency in public institutions and paving the way for large-scale replication.
Driving these changes is a bold and comprehensive strategy. By strengthening policies, expanding financial incentives and deploying next-generation green technologies, the project is creating a scalable model to transform the built environment. Smart policies have introduced regulations and updated building codes, making energy efficiency a requirement for all future public infrastructure. Innovative financing mechanisms – such as expanded green loans that provide favourable terms for eco-friendly projects, more flexible contract energy management models that allow businesses to pay for upgrades through energy savings, and enhanced benefit-sharing systems that distribute financial returns among stakeholders – are unlocking new opportunities for hospitals, universities and airports to invest in clean energy.
“Our school has embraced green and low-carbon development as a core principle,” explains Ma Jing, director of Renmin High School, which also benefited from the project with smart lighting, a new energy management system and heat pumps. “The project focuses on advancing energy conservation and emission reductions in public buildings. Moving forward, our school will continue to share our experiences and strengthen the implementation of green renovation technologies for public buildings.”
Ma Jing is the director of Renmin High School, which adopted energy efficiency measures as part of the programme. Photo: UNDP China
The energy efficiency measures help students at Renmin High School to study and train in a more comfortable environment. Photo: UNDP China
The success of this initiative offers a clear message: public buildings are a strategic starting point for national decarbonization and cost saving efforts. Hospitals, schools and transport hubs are some of the highest energy consumers in any country. By showcasing the economic returns of energy efficiency upgrades through energy savings, reduced operational costs and improved resilience, this initiative strengthens the case for integrating such measures into national development planning. Focusing on policy, finance and technology, China has shown that transformative change is possible at scale.
As the country accelerates toward its carbon neutrality targets, its public buildings are setting a new standard that can inspire other governments around the world to rethink how their cities consume energy. By demonstrating that energy efficiency is both achievable and financially viable, the public sector is also paving the way for private sector engagement, encouraging businesses to follow suit, especially as this project leveraged private financing to scale impact. Ultimately, when hospitals, schools and public spaces go green, everyone benefits, with cleaner air, lower costs and a healthier environment.
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The Energy Efficiency Improvement in Public Sector Buildings in China programme was jointly implemented by the Ministry of Housing and Urban-Rural Development of the People’s Republic of China and UNDP, with funding from the GEF.
As part of this programme, Huashan Hospital’s green transition was implemented with energy experts from the Panzhishi Environment and Energy Research Center, the Green Hospital Professional Committee of the China Building Energy Conservation Association and Tongji University, whose energy experts played a crucial role in conducting audits and proposing technical solutions. Local government agencies, including the Shanghai Municipal Health Commission, provided regulatory support and policy alignment to ensure project scalability. Additionally, private sector technology providers contributed energy-efficient equipment and smart management systems to support long-term sustainability .
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