First appeared in
Asian Development Bank
50 climate solutions from cities in the People's Republic of China
To reduce energy consumption and carbon dioxide emissions in the heavy industry heart of Suzhou, the city is incentivizing companies to conserve energy through its Energy Star Index scheme.
To reduce energy consumption and carbon dioxide emissions in the heavy industry heart of Suzhou, the city is incentivizing companies to conserve energy through its Energy Star Index scheme. The Energy Star Index system comes with a range of service manuals and industrial energy e¡ciency standards, all contributing to lowering the energy consumption in the heavy industry-dominated city. The index system evaluates the overall e¤ciency of each company annually, using four categories with nine subitems, including aspects of policy, regulation, energy management systems, technological progress, and energy performance. The purpose is to stimulate the internal transformation to more energy-e¡cient firms through market mechanisms, promoting the development of energy savings in the PRC.
5.58M
TONS OF CO2 EMISSIONS HAVE BEEN AVOIDED AS A RESULT OF THE 483 COMPANIES’ EFFORTS IN THE ENERGY STAR SYSTEM.
The Energy Star Index rates companies’ energy e¡ciency performance from one star to five stars, and offers economic rewards of up to CNY200,000 for the highest-achieving firms. Since 2011, a total of 483 enterprises in Suzhou have been rated as “Energy Star” firms, with sectors ranging from energy and pharmaceuticals, to textiles and high-tech industries. A total of CNY5.8 billion has been invested to date in energy-saving technologies from these enterprises.
The reduction of air pollutants is beneficial for citizens’ health, especially for children and seniors who are particularly vulnerable to respiratory diseases (photo by Jieshi Zhang).
The Challenge
Energy-intensive manufacturing and continued growth of energy consumption make it di¡cult for Suzhou to control greenhouse gas emissions. The total energy consumption of Suzhou in 2015 was equivalent to almost 50 million tons of coal, with a high proportion of fossil fuel energy sources. Therefore, energy e¡ciency schemes are important to develop the city in a more sustainable way.
Co-Benefits
Economic In 2011, the first year of implementation of the Energy Star Index scheme, an economic benefit of CNY1.55 billion was achieved, and, in the three following years, a further CNY400 million annually.
Environment The implementation of the scheme reduces the pollution caused by fly ash, slags, and other industrial solid waste. It also reduces the emission of air pollutants, including sulfur dioxide and nitrogen dioxide, significantly improving air quality.
Social The project aims to engage citizens at every stage, increasing awareness of the importance and ease of energy savings among the public.