Ministry of Finance: Further Expand Government Procurement Support for Green Building Materials to Promote Quality Improvement Policies

On January 10, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Ministry of Industry and Information Technology jointly issued a notice on further expanding the implementation scope of government procurement support for green building materials to promote quality improvement policies. The notice clearly states that starting from January 1, 2025, in Beijing’s Chaoyang District and 100 other cities (districts), government procurement support for green building materials will be implemented to promote construction quality enhancement policies. Projects included in the policy implementation scope cover hospitals, schools, office buildings, comprehensive complexes, exhibition halls, conference centers, sports venues, affordable housing, and old urban district renovation projects, including those using bidding and tendering methods. Other government-funded projects in each implementing city may also be included in the scope.

Notice on Further Expanding Government Procurement Support for Green Building Materials to Promote Construction Quality Improvement Policies

Finance Ministry Document No. 36 [2024]

Provincial governments, autonomous regions, municipalities directly under the central government, planning-listed cities, finance bureaus (departments), housing and urban-rural development bureaus (commissions, administrations), and the Ministry of Industry and Information Technology: New Energy Construction Group Finance Bureau, Housing and Urban-Rural Development Bureau, Ministry of Industry and Information Technology Bureau:

To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, in accordance with the State Council General Office's "Three-Year Action Plan for Government Procurement Areas 'Market Orderly, Legal System, Industrial Development' (2024–2026)" (State Council General Office Document No. 33 [2024]), fully advance green procurement policies, actively promote the application of green buildings and green building materials, and on the basis of previous government procurement support for green building materials to promote construction quality improvement, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Ministry of Industry and Information Technology have decided to further expand the policy implementation scope. The following matters are now notified:

I. Implementation Scope

Starting from January 1, 2025, government procurement support for green building materials to promote construction quality improvement policies will be implemented in Beijing’s Chaoyang District and 100 other cities (districts) (specific city names see Appendix 1). Projects included in the policy implementation scope include hospitals, schools, public service buildings, comprehensive complexes, exhibition halls, conference centers, sports facilities, affordable housing, and old urban district renovation projects, including those subject to bidding and tendering procedures. Other government investment projects in each implementing city may also be included in the scope.

II. Main Tasks

All implementing cities must deeply embrace the concept of ecological civilization, aiming to promote sustainable urban development. They should leverage government procurement policies to actively promote the use of green buildings and green building materials, vigorously develop new construction models such as prefabricated and intelligent construction, build green buildings, establish long-term mechanisms supporting green low-carbon transformation in the construction sector, lead the green and high-quality development of the building materials and construction industries, and strive to create safe, comfortable, green, and smart living spaces to build livable, green, and low-carbon cities.

(I) Requirements for Implementing Government Procurement Policies

All implementing cities must strictly enforce the "Green Building and Green Building Material Government Procurement Requirements Standard (2025 Edition)" (hereinafter referred to as the "Requirements Standard", see Appendix 2), according to the requirements specified in the notice issued by the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Ministry of Industry and Information Technology (Finance Notice [2023] No. 52), ensuring that green building materials compliant with relevant standards are fully adopted and used throughout all stages of project feasibility study, design and review, government procurement, construction, inspection, acceptance, and third-party evaluation (preliminary assessment). This ensures the full implementation of government procurement support for green building materials to promote construction quality improvement. Cities should make full use of project acceptance information to report green building certifications, maximizing the demonstration effect of government procurement projects.<政府采购支持绿色建材促进建筑品质提升政策项目实施指南>的通知》（财办库〔2023〕52号）要求，在纳入政策实施范围项目的可研编制、设计与审查、政府采购、施工、检测、验收、第三方机构（预）评价全流程的相关活动中，落实政府采购支持绿色建材促进建筑品质提升政策。鼓励通过验收的项目申报绿色建筑标识，充分发挥政府采购工程项目的示范作用。

(II) Strengthen Management of Green Building Material Procurement

For green building materials classified as "mandatory" in the Requirements Standard, procurement and use must be fully compliant with relevant standards. For materials classified as "optional" in the Requirements Standard, implementing cities may, based on their regional location, industrial development, and actual conditions, proactively choose higher-cost-performance green building products, with the selection ratio not less than 40% of the total types of building materials involved in the project. All implementing cities should explore bulk centralized procurement of common green building materials, with centralized procurement institutions or departments establishing periodic procurement plans for green building materials. Promote large-scale procurement through centralized purchasing. Actively advance electronic procurement and trading platforms, gradually integrating all qualified green building products into e-commerce platforms to improve procurement efficiency and transparency. Suppliers of green building materials must provide valid certification documents upon delivery, including national unified green product certification certificates or valid test reports compliant with the Requirements Standard.

(III) Prioritize Progress-Based Settlement

For projects within the policy implementation scope, the proportion of progress-based settlement should be increased, with payment ratios not less than 80% of the completed contract value. Promote progress-based settlement: contractors and clients shall agree via contract to divide the construction process into time periods or milestone points, and conduct cost calculations, confirmation, and payments for work completed within each period without disputes. The confirmed progress settlement documents shall form part of the final settlement package, and no re-audit is required after final completion unless there are exceptional circumstances.

III. Work Requirements

(I) Clarify Departmental Responsibilities

The finance, housing and urban-rural development, and industry and information technology departments at the implementing city level must fulfill their respective duties, strengthen coordination and collaboration, and form policy synergy. The finance department shall organize procurement personnel to implement the Requirements Standard, guide centralized procurement agencies in conducting bulk procurement of green building materials, and strengthen supervision of procurement activities. The housing and urban-rural development department shall enhance oversight of projects within the policy implementation scope, cultivate demonstration projects for green material applications and high-quality green buildings. The industry and information technology department shall, based on regional characteristics, develop green building material industries locally and foster key enterprises and leading products.

(II) Carefully Organize Implementation

Provincial-level finance, housing and urban-rural development, and industry and information technology departments, upon receiving this notice, must promptly forward it to the relevant departments at the implementing city level and strengthen work guidance. Implementing cities must develop local implementation plans based on policy requirements, clarify responsibilities among relevant departments, establish coordination mechanisms, summarize practical experience, promote replicable and scalable best practices, promptly research and address issues arising during practice, ensure smooth expansion of the implementation scope, and achieve tangible results.

(III) Strengthen Policy Implementation

The Ministry of Finance will work with the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology to further strengthen policy guidance and widely publicize successful cases and exemplary practices from pilot cities. Provincial-level finance departments will collaborate with housing and urban-rural development and industry and information technology departments to explore incentive and evaluation mechanisms tailored to local realities, ensuring policy effectiveness. Relevant local authorities and departments must strengthen policy interpretation and publicity training, respond promptly to social concerns, mobilize positive participation from all sectors, and foster a favorable working atmosphere.

Appendix:

1. List of Implementing Cities for Government Procurement Support for Green Building Materials to Promote Construction Quality Improvement Policies

2. Green Building and Green Building Material Government Procurement Requirements Standard (2025 Edition)

Ministry of Finance

Ministry of Housing and Urban-Rural Development

Ministry of Industry and Information Technology

December 31, 2024