Incentivising Energy Efficiency - German promotional programmes for energy efficiency as a potential blueprint for China

In China the growing energy demand has led the country to put more focus on energy efficiency and to implement energy saving policies. In addition to its existing efforts, China is constantly exploring new ways to tap into the huge energy saving potential, particularly in the industry sector. Given Germany’s great experience with the promotion of energy efficiency, it is an ideal partner for China to share experiences and explore new pathways for an energy efficient future.

The energy-policy cooperation between the German Federal Ministry for Economic Affairs and Energy (BMWi) and the National Development and Reform Commission of the People's Republic of China (NDRC) was initiated in 2006 at the Sino-German Forum for Economic and Technological Cooperation. This cooperation has been continued throughout the last years through the German-Chinese Energy Partnership carried out by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

Against this backdrop, GIZ commissioned adelphi  to develop the study “Incentivising Energy Efficiency – Germany’s promotional programmes in the industry and buildings sector as a potential blueprint for China”. The study builds upon the results of the overview study on promotional schemes for demand-side energy efficiency carried out by adelphi for the Indo-German Energy Forum in 2014. This study examined the German landscape for the promotion of energy efficiency in the building and industry sector and assessed the promotional mechanisms according to their impact and performance. For the assessment a set of indicators was developed by adelphi. In the new study, the entire information on the existing financial promotional programmes for energy efficiency was updated and revised. The set of indicators was adapted to the needs of the Chinese context. In addition, six detailed case studies were developed for programmes that are particularly relevant for China. The case studies provide an overview of the emergence of each respective promotional mechanism including changes made to the programmes. Based on the learning from the historical development recommendations were given on the design of implementation and the prevailing conditions that need to be in place to make such a promotional mechanism successful.

The study thus aims to provide ideas and case studies how to financially incentivise the transition to more energy efficiency in the industry and building sector in China.