Promoting Energy Efficiency and Cutting Emissions in Rural China

Promoting Energy Efficiency and Cutting Emissions in Rural China

May 16, 2007

A Successful Partnership Between UNDP, UNIDO, Chinese
Government and GEF to Reduce Energy Consumption and Carbon
Emissions in China's Rural Enterprises


    HANGZHOU, China, May 16 /Xinhua-PRNewswire/ -- The
United Nations and the Chinese Government unveiled today a
sustainable model to save energy and cut emissions in heavy
polluting rural enterprises to help protect the environment.
The successful model is hoped to be replicated to upgrade
millions of Township and Village Enterprises (TVEs) in
China and small medium enterprises (SMEs) globally.

    (Logo:
http://www.xprn.com.cn/xprn/sa/20061107113358-34.jpg )

    The six-year project was designed to test out effective
models to promote energy efficiency and clean development in
TVE's major polluting sectors of cement, brick, coking, and
metal casting, notably responsible for one sixth of China's
total carbon emissions. Through a barrier removal framework
to facilitate access to finance, new technology and
markets, the pilot project has successfully upgraded the
outdated production methods and inefficient technologies of
the rural enterprises to be both environmentally friendly
and economically competitive.  

    To date, the project has reduced carbon dioxide
emissions by 300,000 tons per year in nine pilot
demonstration sites in Shaanxi, Shanxi, Sichuan, and
Zhejiang. The pilot sites were catalytic in spurring the
replication in an additional 118 TVEs, thereby helping to
save an additional 2 million tons per year of carbon
dioxide emissions, while 400 more TVEs have visited the
pilots to learn of the model. 

    "Increasing efforts in energy conservation and
emissions reduction are urgently required to respond to
global climate change," said Khalid Malik, UN Resident
Coordinator and UN Development Programme Resident
Representative in China.

    "While TVEs account for 30% of China's GDP and
play a critical role in poverty alleviation by generating
income and creating millions of jobs for the rural poor,
they are also characterized by high levels of energy
consumption, inefficiency and pollution. With the right
incentives and access to finance, we demonstrated that
transformation can occur," said Malik. 

    In particular, the project set up an entrustment loan
financing scheme that has provided funding opportunities to
encourage rural enterprises to invest their revenues into
energy efficient technologies, helping to attract new
investments of over US$150 million in the demonstration and
118 replication TVEs.

    Furthermore, the project also contributes to improving
the livelihood of the local communities. For example, in a
pilot cement factory, the waste heat generated during the
production process is used to create electricity for its
own operations, while transferring the unused electricity
to the local power grid. 

    The results of the US$18.5 million project were
introduced at the International Forum on Energy Efficiency
in SMEs opened today in Hangzhou, where delegates from 10
countries will participate in an 8-day tour to study the
successful results of the program.

    The Ministry of Agriculture, UNDP, United Nations
Industrial and Development Organization (UNIDO) and the
Global Environment Facility (GEF) are partners to the
project, which will come to a successful end in August.

    The number of TVEs stands at around 23 million in
China, providing roughly 143 million rural jobs.  However,
they are also believed to be responsible for over 50% of
all pollutants nationally.

    UNDP fosters human development to empower women and men
to build better lives in China. As the UN's development
network, UNDP draws on a world of experience to assist
China in developing its own solutions to the country's
development challenges. Through partnerships and
innovation, UNDP works to achieve the Millennium
Development Goals and an equitable Xiao Kang society by
reducing poverty, strengthening the rule of  law, promoting
environmental sustainability, and fighting HIV/AIDS.  
http://www.undp.org.cn



    For more information, please contact: 

     Ms. Zhang Wei, Communications Officer, 
     UNDP China 
     Tel:   [phone]
     Email: [e-mail]