As in many other provinces of the People’s Republic of China (PRC), Shanxi's rapid urbanization has fueled a rising demand for housing and urban infrastructure.  Strong economic growth, higher incomes, and the privatization of housing has likewise driven an increasing demand for district heating that, because of the abundance of coal, has relied primarily on the burning of this fossil fuel.

Beijing and Tianjin municipalities and Hebei province make up the economically important Beijing–Tianjin–Hebei (BTH) region in the northern part of the People’s Republic China (PRC). Home to 109.2 million people, the region generated 10% of national gross domestic product (GDP) in 2013.  It is an engine of PRC’s socioeconomic development, but poor air quality jeopardizes sustainable growth.