Around the world, engineers, architects and policymakers have been exploring ways to deliver highly efficient buildings whose reduced energy demand is satisfied by clean, renewable energy. Building off of the broader concept of a green or sustainable building, the concept of the “net zero building” focuses on the energy dynamics and performance of the building. And as policymakers and leaders align toward the net zero concept, the focus on achieving deep energy efficiency has centered on integrated technologies as well as ways to connect buildings to the natural environment.

The building sector is considered as the biggest single contributor to world energy consumption and greenhouse gas emissions. Therefore, a good understanding of the nature and structure of energy use in buildings is crucial for establishing the adequate future energy and climate change policies. Availability of the updated data is becoming increasingly important in order to allow a rigorous analysis. In this paper, recent data on the world energy consumption in both residential and commercial buildings are reported.

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.