National Development and Reform Commission (NDRC)

November 29, 2007

Following the instruction of Premier Wen Jiabao and the requirements of "Comprehensive Working Plan for Energy Conservation and Pollution Reduction" promulgated by the State Council, the National Development and Reform Commission drafted an "Implementation Plan for Unit GDP Energy Consumption Assessment System" ("Implementation Plan" for short). This Implementation Plan was revised and submitted to the State Council after soliciting opinions widely from related departments and provinces. On November 17th, this Implementation Plan was approved and endorsed by the State Council.

There are two categories of assessment objects defined in the Implementation Plan. The first is the people's governments of Provinces (Autonomous Regions and Municipalities directly under the Central Government). The second one is the top-1000 key energy consumption enterprises. In order to make it enforceable, quantified scoring methodology is adopted for the unit GDP energy consumption assessment. Two kinds of indicators i.e., the target fulfillment of energy conservation and the implementation of energy conservation measures, are set up in the assessment system. Among them, the indicator for the targets fulfillment of energy conservation is a veto indicator. Failing in reaching the energy conservation targets means failing in the assessment. For these two kinds of assessment objects, different assessment procedures are adopted in the Implementation Plan. For the assessment of provincial governments, the assessment taskforce will be set up by the National Development and Reform Commission together with the Ministry of Supervision, Ministry of Personnel, State-owned Assets Supervision and Administration Commission, General Administration of Quality Supervision, Inspection and Quarantine, National Bureau of Statistics, Office of the National Energy Leading Group and other government agencies. The comprehensive assessment report will be prepared on the basis of on-site assessment, selective inspection and other measures. The assessment results, endorsed by the State Council, will be announced to the public by the National Development and Reform Commission. For the assessment of top-1000 key enterprises, the assessment will be made by provincial energy conservation departments. The assessment results will be announced to the public after the review by the National Development and Reform Commission.

The award and punishment measures are clearly defined in the Implementation Plan. For all provincial governments, the energy conservation assessment results will be provided to the personnel department, and will be regarded as an important basis for the comprehensive assessment of the leading group and leading officials of the government. The accountability system and one ballot veto system will be implemented. For those provincial governments which are evaluated as failing to meet those targets, the leading officials shall not be eligible to take part in the annual award competition, or to receive any honorary title. The central government will temporarily halt the verification and approval of newly constructed high energy consuming projects in this region. For those top-1000 key enterprises which are evaluated as failing to meet the targets, they will be subject to a notice of criticism, and shall not be allowed to attend annual award competition, or to receive any honorary title or be granted with inspection-free and other incentive treatments. The verification and approval for their newly constructed high energy consuming investment projects and newly added industrial land, will be suspended. The Supervision and Management Agency for State Owned Assets will take the assessment results for sole state-invested or state holding enterprises as an important basis for the performance assessment of the leaders of those top-1000 key enterprises. The one ballot veto will be implemented. For those provincial governments and top-1000 key enterprises which were evaluated as failing to meet the targets, they shall be asked to take actions for rectification and upgrading during a given time. For those who fulfilled or over fulfilled the assessment targets, commendation and awards will be granted.

(China Development Gateway November 29, 2007)