# Presentation: 285241

## UNDP/GEFEnergy Conservation and GHG Emissions Reduction in Chinese TVEs

**PIC Study Tour in the U.S.**
**September 13-28**

## Participants of the Study Tour

| Name | Title | Affiliation |
| --- | --- | --- |
| Mr. WANG Xiaohu
 | Deputy Director-General
 | Center for Science & Technology Development, MOA |
| Ms. CAI Li | Deputy Division Director | Township and Village Enterprise Bureau, MOA |
| Mr. JI Shaoqin | Section Chief
 | Department of Science, Technology, and Education, MOA |
| Mr. WANG Hai | Engineer
 | Energy Institute, Academy for Agricultural Planning and Design, MOA |
| Ms. JIANG Han | Translator | Center for International Exchange Services, MOA |
| Mr. TAN Gang | RCF Loan Officer | Agricultural Bank of China |
| Mr. YUAN Hui | Deputy Director-General | Dalian Municipal TVE Bureau |
| Mr. PENG Guoshan | Deputy Division Director | Hubei Provincial TVE Bureau |

## Project Partners

- GEF: funding agency
- UNDP: implementing agency
- UNIDO: executing agency
- MOA: Chinese government counterpart
- ABC: host of the Revolving Capital Fund

## Ultimate Objective

- To reduce GHG emissions from Chinese TVEs  in the following four sectors:
- Brickmaking
- Cement
- Coking
- Metal casting

## Immediate Objective

- To create an institutional mechanism for removing barriers to the efficient use of energy in TVEs
- Policy barriers
- Market barriers
- Technology barriers
- Financial barriers
- Pilot counties/provinces: 820 (replication)
- Pilot TVEs: 8100 (replication)

## Institutional Mechanism

- To remove policy barriers
- PIC at the national level
- LPIC at 8 pilot counties/cities
- To remove technology/market barriers
- PTPMCHongyuan Company
- To remove financial barriers
- RCFcommercial loan facility, entrustment loan facility, and capacity building facility

## What Are TVEs?

- Township and village enterprises
- SMEs in rural and peri-urban areas
- Non-state enterprises owned by townships and villages (collective) and individuals (private)
- Importance in Chinese economy
- 22 million TVEs, employing 130 million people
- 6.7 million industrial TVEs
- Nearly 1/3  of China’s GDP
- Almost 1/2 of industrial output

## The Energy-Intensive Sectors:Brickmaking, Cement, Coking, and Metal Casting

- Typically employ outdated, energy-inefficient technologies
- Account for 60% of industrial TVE energy use
- Brickmaking: 79 mtce
- Coking: 54 mtce
- Cement: 27 mtce
- Metal casting: relatively small but rapidly growing
- Make up nearly 1/6 of China’s CO2 emissions

## PIC and LPIC

- Created by MOA in early 2001, consisting of representatives from 7 concerned govt agencies
- Operates through a Secretariat
- Role of PIC
- Provides guidance for policy coordination
- Creates a policy environment conducive to dissemination of energy-efficient technologies
- Local PIC
- Established at the 8 pilot counties
- Oversees market transformation and regulatory reforms

## PTPMCHongyuan

- PTPMC consists of a Secretariat and membership organizations.
- Research/design institutes, equipment manufactures, training centers, consultancies, and other service providers
- The Secretariat brokers business development services between qualified service providers and TVE clients.  Activities include:
- Project identification, enabling activities, and performance monitoring
- The PTPMC Secretariat has been registered as a commercial entity:
- Hongyuan Energy and Environmental Protection Co. Ltd.

## The Revolving Capital Fund

- RCF is a dedicated financial instrument hosted within ABC.
- Its purpose is to catalyze TVE-based investments in energy conservation.
- Funding sources:
- GEF: $1 million
- MOA: $1 million
- ABC: $2 million

## Expected Outcome of Project

- Policy, technology, market, and financial barriers removed (ameliorated) in the 8 pilot counties
- Energy-efficient technologies adopted at the 8 pilot TVEs
- Replication of barrier removal activities in other TVEs and counties
- Reduced energy use, reduced local pollution, reduced CO2 emissions, higher productivity and profits, and enhanced social and economic development

## Purpose of the Study Tour

- Learn about energy efficiency and environmental policies relevant to the TVE project
- Learn about financial mechanisms (e.g., revolving fund) for energy efficiency and pollution control programs
- Learn about programs promoting small and medium enterprises
- Learn about the advanced industrial technologies in brickmaking, cement, coking, and metal casting