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.

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.

Cities are crucial sites for achieving socio-technical transitions in technology and infrastructure systems. Raising building energy efficiency (BEE) through new construction or retrofitting holds particular relevance to sustainability transitions since this requires diffusion of new technologies and energy management practices. In pursuit of this, city policymakers around the world are increasingly utilising mixes of multiple policy instruments.