China Releases Implementing Plan for Energy-Saving Assessment
By Yao Lu
Jul. 30 – To urge enterprises to effectively fulfill the social responsibility of energy-saving and emissions reduction and build resource-saving and environmentally-friendly enterprises, China’s National Development and Reform Commission (NDRC) promulgated the “Circular of the NDRC on Printing and Distributing the Implementing Plan of Energy-saving Target Responsibility Assessment for 10,000 Enterprises (fagaibanhuanzi  No.1923, hereinafter referred to as ‘Circular’)” on July 11. The Circular sets up three requirements for local authorities to follow and outlines the objects, contents, and method of assessment, followed by the application of the assessment results.
The Circular puts forward three requirements for the local authorities, which are:
- Local authorities shall fully understand the importance of conducting the energy-saving target responsibility assessment for 10,000 enterprises (hereinafter referred to as the ‘assessment’), taking the assessment as an important way to strengthen the energy-saving responsibility of enterprises and a method to promote the implementation of each policy measure for energy-saving and low-carbon emission activities.
- Local authorities shall forward the implementing plan of the assessment to relevant local enterprises on a timely basis, making enterprises fully understand the assessment requirements by organizing and carrying out relevant training activities.
- Local authorities shall, in accordance with the requirements under the implementing plan of the assessment, assess the energy-saving status of 10,000 enterprises in the year 2011, and then report the results to the NDRC before Oct 13, 2012.
The objects, contents and method of assessment
The assessment objects are the energy-consuming enterprises listed under the enterprises list released by the NDRC regarding energy-saving and low-carbon emission activities for 10,000 enterprises.
The assessment contents consist of the completion status of the energy-saving targets and the implementing status of energy-saving measures. The target completion status refers to the object’s progress towards the goal on energy saving set up under the 12th Five-Year Plan. The implementing status refers to the object’s management and leadership, energy-saving responsibility system, energy-saving management, technical progress, energy-saving laws and regulations.
The assessment adopts the quantitative assessment method, and sets up the corresponding indicators for evaluating the completion status of the object’s energy-saving target and the implementing status of the energy-saving measures (in accordance with the requirements under the implementing plan for the energy-saving and low-carbon emission activities for 10,000 enterprise). Full marks are out of 100 points.
The assessment results are divided into four levels:
- 95 points and above: Over-fulfilling the task,
- From 80 points to 90 points: Fulfilling the task
- From 60 points to 80 points: Basically fulfilling the task
- Below 60 points: Failing to fulfill the task
The application of assessment results
The competent energy-saving departments of the provincial level shall release the assessment results to the public before the end of April.
The NDRC shall report the overall situation of the assessment, the completion status with regards to the energy-saving target of central enterprises, as well as information on the enterprises failing to fulfill the energy-saving target to the relevant departments, such as the State-owned Assets Supervision and Administration Commission and the China Banking Regulatory Commission.
The local authorities and the relevant departments shall appraise and provide incentives to those enterprises (organizations) with high marks in energy-saving. Meanwhile, enterprises failing to achieve the target shall be given a notice of criticism, exposed by news media, forced to go through the procedure for energy auditing, and ordered to rectify within a designated time. Such enterprises are not eligible to participate in annual award competition, nor be granted with any honor or national supporting and preferential policies, such as national exemption from inspection. Furthermore, the examination and approval for energy evaluation of their newly established high energy-consuming projects shall be temporarily postponed. The corresponding restriction measures shall be conducted on enterprise credit ranking, loan accessibility, exit management and granting of loans.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia.
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