Regulatory and policy options to encourage energy efficiency - unido

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUALpage 16.52enterprises. The state authority in charge of energy conservation formulatedthe Regulation for Enterprises Energy Conservation Management Upgrading(Grading). Many sectors also formulated their respective Enterprise EnergyConservation Management Upgrading (Grading) Methods putting forward specificenergy consumption targets for enterprises of different grades. These upgrading(grading) activities were conducted in almost all enterprises. Enterprise upgradingactivities had a significant impact in enterprise energy conservation work.From 1986 to the early 1990s, enterprises in China generally practised the energyconservation bonus system. Enterprises could allocate certain amount of fundsin proportion to an energy conservation volume and award energy conservationoperating and management staff. This practice greatly motivated the initiativesof the enterprises and employees increasing their awareness and strengtheningenergy conservation management.In the 1990s, deepening economic reform, and the transformation of the functionand operation of government within enterprises, resulted in enterprises becomingthe main business operating entities. It is no longer practical to carry outenergy conservation administration using the previous practices. In view of thenew changes in the national economy, the Government began to adopt marketmechanisms, implement market-based energy conservation projects, exploremarket-based incentive policies for energy conservation as well as strengtheningenergy conservation information dissemination and international cooperation.In November 1997, the Chinese government promulgated the Energy ConservationLaw and it into effectiveness on the 1 January 1998. The Energy Conservation Lawmade provisions for energy conservation administration, the rational use ofenergy and the promotion of energy conservation technology advances. Currently,the central government and the local and sector authorities are formulating supportingregulations for the implementation of the Energy Conservation Law. InNovember 1998, the China Energy Saving Product Certification AdministrationCommittee and the China Energy Saving Product Certification AdministrationCentre were established and formulated the China Energy Saving ProductCertification Administration Method. In March 1999, the government issued theAdministration Method for Key Energy Consuming Units. This resulted in the Listof Key Energy Consuming Units, which was published in August of the same year.To date, Shanghai, Zhejiang, Shandong, Beijing and Shanxi have formulated theirrespective Energy Conservation Regulation and Implementation Methods.In addition, in order to standardize the management system and energy consumptionbehaviour, the State has promulgated a range of policies and regulations.Other laws and regulations relevant to energy conservation include the ElectricityLaw, Coal Law, Law of Mineral Resources and the Law on Atmosphere PollutionPrevention etc.
MODULE 16: REGULATORY AND POLICY OPTIONS TO ENCOURAGE ENERGY EFFICIENCYpage 16.53By the end of 1998, at the central government level alone, a total of 25 energyconservation regulations and provisions, 27 energy conservation design codes,nearly 100 national standards on energy conservation had been issued. Over theyears, the government has also made announcements to popularize 18 batcheswith a total of 1068 energy saving products as well as to eliminate 17 batcheswith a total of 610 energy inefficient products.In view of the new changes in the national economy emerged in recent years,government intervention in the national economic activities is gradually shiftingfrom past control and command to relying on market-based measures. Moreattention is being focused on strengthening macro control, structural adjustmentand upgrading and improving economic operating quality and benefits. The objectiveof formulating energy conservation plans has also shifted away from meetingshort-term energy supply shortages. Instead, formulation of the energyconservation plan is to meet the requirement of medium to long-term socioeconomicdevelopment for energy through energy structure optimization, controlof energy efficiency for newly increased production capacity and the technicalrenovation of existing facilities.2.2. Energy management systemsIn the 1980s, China established one of the most extensive energy conservationmanagement systems. At the central government level, the State Council establishedthe working meeting system to study and decide on key national energyconservation issues. Energy conservation management organizations were alsoestablished by the SETC, SPC, local and sectoral authorities to organize andimplement various energy conservation management work. Key energy consumingenterprises also established energy conservation units and allocatedspecific personnel to monitor and manage energy use within the enterprises. Inaddition, more than 200 energy conservation technical service centers werealso established nationally to provide technical services, energy auditing andinformation services to enterprises.2.3. Formulating preferential economic policy andproviding special fund for energy conservationIn the 1980s, the State practised various preferential economic policies to promoteenergy conservation. These policies included low interest rate loans, loanpayment before tax, three-year product tax and value-added tax exemption fornew energy conservation products, import duty reduction and exemption forenergy conservation technology and equipment introduction. The state budget
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