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Shenzhen, China Reduces Emissions While Lowering Residents’ Energy Bills

15th March 2025
in Natural Global Resources
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WRI partnered with the city government and local institutions to implement dozens of near-zero carbon demonstration projects, including measures like rooftop solar, building retrofits and more green space.

The Challenge

Household electricity consumption in China has doubled over the past decade, significantly increasing carbon emissions. In Shenzhen, home to 18 million residents, the growth of household energy demand has surpassed that of industry, posing challenges to the city’s low-carbon ambitions. Without clear technical guidance and cost-effective solutions, the city has struggled to reduce its emissions while maintaining affordability and quality of life for residents — particularly for low-income and vulnerable groups. 

WRI’s Role

WRI China partnered with the city government, the Shenzhen Institute of Building Research, and other local institutions to support the implementation of dozens of near-zero carbon demonstration projects. The projects aimed to rein in Shenzhen’s growing energy emissions while lowering costs and improving quality of life for citizens. 

WRI conducted surveys with over 1,000 community members to assess public needs, developed cost-benefit analyses of low-carbon technologies, and provided technical guidance on prioritizing investments such as rooftop solar and building retrofits for energy efficiency. WRI also created a technical guide for near-zero carbon communities, organized six capacity-building events for local practitioners, and facilitated knowledge exchanges with international partners such as the city of Kyushu, Japan. WRI’s recommendations were adopted as part of Shenzhen’s city-wide subsidy policy, while its technical guide influenced local standards for near-zero carbon communities. 

The Outcome

Shenzhen created 113 near-zero carbon demonstration projects that are creating measurable environmental and socioeconomic benefits. For example, solar installations and building retrofits in one pilot community are expected to reduce greenhouse gas emissions by 45% while lowering household electricity costs by 22% (about $80 per household annually).  

Across Shenzhen, demonstration projects will reduce annual CO₂ emissions by 1 million tons, cut the city’s electricity demand by 3.5%, and save residents US$ 280 million in energy costs. Meanwhile, more than 18 million residents, including vulnerable groups, are benefiting from more green space.  

The city has also implemented a subsidy policy providing up to 1 million yuan (approximately US$140,000) per community to help scale low-carbon projects citywide while preventing low-income residents from shouldering the costs. Shenzhen’s experience was so successful that it is already being recognized by other Chinese cities, including Shanghai and Sichuan. 

 

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