Academicians and professionals in the architecture, engineering, and construction (AEC) field have expressed an increasing interest in sustainability and its application in the development of construction projects, especially with its deemed relationship with lean construction, for the purpose of improving efficiency in the construction processes. Practices framed under the lean philosophy show their potential in reducing environmental, economic, and social impacts during the construction phase, with an increase in the parameters of sustainability in the development of projects.

In April 2010 the Tokyo Metropolitan Government launched the Tokyo Cap-and-Trade Program to reduce energy consumption-related CO2 emissions at the city level. This is the world's first cap-and-trade programme to cover buildings in the commercial, industrial and public sectors. Its main aim is to reduce CO2 emissions from energy consumption in existing buildings in urban areas; therefore, it is called an ‘urban cap-and-trade programme’.

The Shenzhen ETS is the first urban-level “cap-and-trade” carbon emissions trading scheme to operate in China. This paper gives an overview of the economic and emissions situation in Shenzhen and focuses on the development of the Shenzhen ETS regulatory framework. It is devised as an ETS with an intensity-based cap, output-based allocation and a market for trading of allowances. The design of the Shenzhen ETS attaches great importance to coordinate the dynamic relationships between economic growth, industrial transition and emissions control.