Circular economy (CE) as a new model of economic development promotes the maximum reuse/recycling of materials, goods and components in order to decrease waste generation to the largest possible extent. It aims to innovate the entire chain of production, consumption, distribution and recovery of materials and energy according to a cradle to cradle vision.

Many recent major studies, including the IPCC’s Fourth Assessment Report, have attested that energy efficiency is humanity’s prime option to combat climate change in the short- to mid-term. The potential to avoid CO2 emissions cost-effectively has been reported to be significant through efficiency policies. However, the review of global research findings on the quantification of cost-effectiveness of opportunities through improved efficiency has highlighted that there is a major shortcoming in the vast majority of such calculations.

With the high growth urbanization and increasing new urban population, the huge demand for infrastructures and dwellings has become a great challenge for the sustainable development in Chinese cities. The building sector shares one fourth of total energy consumption in the country and plays an important role in reducing the energy consumption and the consequential greenhouse gas (GHG) emissions. Some policies have been issued for promoting the low carbon sustainable development in China's buildings.