China

CN-10:Regulation on Energy Conservation Supervision

Policy Description

In January 2014, the Ministry of Industry and Information Technology (MIIT) released a statement on strengthening the supervision of industrial energy conservation activities. Energy conservation supervision refers to enforcing laws, regulations, policies, and standards related to energy conservation in the industrial sector. MIIT calls energy conservation supervision as an effective measure for enforcement, a key component of improving industrial energy efficiency, and a significant driver of accelerating the industrial transition to a more environmental-friendly and resource-conserving system. MIIT also noted there are several difficulties, such as insufficient capacity at the local level, inconsistent enforcement levels, and limited content and scope of the supervision work. This statement has been developed to strengthen the effectiveness and improve the impact of energy conservation supervision. 

Description

In January 2014, the Ministry of Industry and Information Technology (MIIT) released a statement on strengthening the supervision of industrial energy conservation. Energy conservation supervision refers to enforcing laws, regulations, policies, and standards related to energy conservation in the industrial sector. MIIT calls energy conservation supervision as an effective measure for enforcement, a key component of improving industrial energy efficiency, and a significant driver of accelerating the industrial transition to a more environmental-friendly and resource-conserving system. MIIT also noted there are several difficulties, such as insufficient capacity at the local level, inconsistent enforcement levels, and limited content and scope of the supervision work. This opinion is developed to strengthen the effectiveness and improve the impact of energy conservation supervision. 

In the statement, MIIT identified four areas to improve energy conservation supervision of energy-saving targets and regulations. The first area is to supervise the implementation of the energy saving target responsibility system (节能目标责任制度情况监察). The target responsibility system requires companies under supervision to develop and implement energy-saving plans and energy-saving retrofits, set energy-saving targets, and implement energy management systems.  Energy supervision authorities conduct evaluations based on the implementation of the energy-saving target responsibility systems. The second area refers to supervision on energy measurement and instrumentation. It requires enforcing the mandatory national standard of “General Principle of Equipping and Managing of the Measuring Instrument of Energy in Organization of Energy Using (GB 17167-2006)”, with a goal of improving energy consumption data collection and data analysis systems. The third area focuses on strengthening supervision of energy conservation in key energy-using companies. These companies use more than 10,000 tonnes of coal equivalent (tce) of energy per year. This also includes certain companies listed by local governments that consume more than 5,000 tce per year. Based on the requirements of the Top 10,000 Program (see CN-3b), energy supervision requires enforcing binding energy-saving targets (see CN-2), the Maximum Energy Performance Standards (see CN-4), energy efficiency benchmarking, phasing out obsolete production equipment and processes (see CN-5), and energy management systems. The last supervision area is regarding enforcing energy efficiency appraisals for newly built industrial projects (see CN-17). This focuses on industrial sectors with overcapacity (see CN-19), such as iron and steel, cement, electrolytic aluminum, and flat glass sectors.

The statement also emphasizes three key topics for energy conservation supervision, including phasing out obsolete capacity, key energy-consuming products, and supervision on the differential pricing policy (see CN-8).

The central government agency responsible for industrial energy conservation supervision is MIIT. It provides guidance and support to local supervision agencies. MIIT requires provincial level agencies to submit energy conservation supervision reports to MIIT by March every year. It also calls for strengthening the capacity of energy supervision, through equipping needed resources (e.g., such as staff), streamlining the process of energy supervision, improving coordination with local finance departments, and ensuring budgetary needs based on the China’s Energy Conservation Law

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Standards

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2014

End Date: 2018

Policy Linkages

Supports Energy and Carbon Intensity Targets of the 12th Five Year Plan Effort Defining
Supports Top-10,000 Energy-Consuming Enterprises Program Effort Defining
Supports Industrial Energy Performance Standards Effort Defining
Supports Small Plant Closures and Phasing Out of Outdated Capacity Effort Defining
Supports Differential Electricity Pricing for Industry Supporting Measure
Supports Energy Efficiency Appraisals for New Large Industrial Projects Effort Defining
Supports Boiler Action Plan Supporting Measure

Agencies Responsible

Ministry of Industry and Information Technology
Local Development and Reform Commissions
Local energy conservation supervision agencies

Primary Objective: Energy

Objective

This statement is aimed at strengthening the effectiveness and improving the impact of energy conservation supervision, in order to support industrial energy-saving targets.

Target Group

• Local economic and information commissions • Local energy conservation supervision agencies • Industrial companies (use at least 5,000 tce/year)

Driver of energy consumption or emissions affected by policy: Total energy use, specific energy consumption, institutional capacity

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

Quantitative Target? yes

Target: see Target Group

Progress Monitored? yes

Monitoring Done By

Organisation Type Organisation Name
Government Agency Ministry of Industry and Information Technology

Verification Required? no

Verification Done By

Organisation Type Organisation Name
Government Agency Local energy conservation supervision agencies

Enforced? yes

Requirements on the Target Group

MIIT requires provincial level agencies to submit energy conservation supervision reports to MIIT by March every year. It also calls for strengthening the capacity of energy supervision, through equipping needed resources (e.g., such as staff), streamlining the process of energy supervision, improving coordination with local finance departments, and ensuring budgetary needs based on the China’s Energy Conservation Law. 

Support by Government

MIIT provides guidance and support to local supervision agencies to improve the enforcement of energy-saving regulations, standards, and requirements. 

Implementation Toolbox

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions
Estimated costs/benefits for industry
Estimated cost for government

References & Footnotes

References

[1] Ministry of Industry and Information Technology (MIIT), 2014. “Opinion to Strengthen Industrial Energy Conservation Supervision (关于加强工业节能监察工作的意见)”, March 11. http://www.miit.gov.cn/n11293472/n11293832/n12843926/n13917012/15917066.html