Current PEPS Initiatives
PEPS' initial scope of work in China, begun in early 2002 and funded by the Energy Foundation and the US Environmental Protection Agency, is to develop a pilot project for government purchasing of energy-efficient products, utilizing China's nascent energy-efficient labeling scheme. The effort is being implemented by the China Standards Certification Center (CSC)–formerly the CECP–under the direction of the National Development and Reform Commission (NDRC).
In 2004, the Ministry of Finance and the National Development and Reform Commission had issued a policy document on “Implementation of Government Energy Efficiency Procurement,” calling for a staged, 3-year program to establish energy-efficient purchasing practices at all levels of government in China [Treasury 2004 Number 185.pdf - 68 KB]. The energy-efficient procurement program went into effect in 2005.
Government organizations are directed to purchase efficient products that qualify for CSC certification. Initially, the following product categories were covered:
In 2006, the following 10 products were added:
The addition of these products completed the suite of office equipment most frequently procured in public buildings and added additional lighting and a few specialty industrial products. Other product categories will be added in the future.
In support of the new policy, PEPS and CSC have developed "purchasing guides" for a number of products, detailing the lifetime benefit of purchasing an efficient model and additional contact information. CSC has assembled a complete list of all qualifying models, which is posted on its website as well as that of the NDRC and the Ministry of Finance E-Procurement web.
An initial analysis of the technical potential for savings from China's current procurement program (excluding water-efficiency products) indicates the scope of savings available. "Potential for Savings in China’s Government Energy Efficiency Procurement Program: Preliminary Findings" [Potential for Savings in China.pdf - 303 KB] estimates that cumulative 10-year savings for the seven products on the initial procurement list could be as high as 10.9 TWh and over 10 million tonnes of CO2. The net present value of the cost savings total RMB¥8.7 billion (US)$1.1 billion.
In 2002, the State Economic and Trade Commission (SETC, now the National Development and Reform Commission, NDRC) announced that government energy efficiency was to become an ongoing focus of energy efficiency policy. The initial work in this direction was a plan to develop a mandatory government policy for procurement of energy-efficient products, building on China's certification process for energy-efficient products.
LBNL helped CECP develop a survey form—derived from a similar survey by CONAE in Mexico—to look at procurement practices, equipment inventory, equipment purchases, and equipment energy use in Chinese government buildings in four provinces (including hospitals and universities, which are run by the national government in China). CECP conducted the survey and prepared a report on the findings; the report's executive summary is now available. [CECP Executive Summary.pdf - 112 KB]
A draft report on the survey was submitted to NDRC for review; they passed it on to the State Council. Then-Vice Premier Wen Jiabao was very impressed by the findings and prepared an official note indicating that government energy management should become part of the government's work agenda, and because government energy management involved retrofits of buildings, energy efficiency procurement, and improving energy management, it should be studied in an integrated fashion by relevant government departments in order to develop energy management system for implementation. (Wen Jiabao was appointed Premier of China during the National People's Congress in April, 2003, replacing Zhu Rongji.)
Based on this high-level interest, NDRC and CECP held a workshop on 22-23 September 2003 in Beijing that was originally planned to focus exclusively on purchasing and the development of the Chinese pilot procurement project. The scope of the workshop was later expanded to include a broad range of public-sector energy efficiency programs and policies. International experts from the US, Canada, EU, Australia, Japan, and Korea presented their experiences as input to designing the proposed Chinese programs. The workshop also served to provide policy suggestions for the Chinese government on the development of government procurement policy for energy-efficient products and, more generally, the reduction of the government's energy consumption. The English-language versions of the presentations at the workshop are available here [International Workshop on Government Energy Management Programme]; Chinese versions are available on CSC's web site.
In the next phase of the program, PEPS and CSC are working together to further develop the regulatory and technical content of the energy efficient procurement program, including technical information and training for government purchasers, and feedback on program implementation and results.