Common use of Supporting Policies Clause in Contracts

Supporting Policies. While the enterprises are assessing their energy-efficiency potential, the Shandong ETC formulates a list of possible supporting policies that can be offered to the participating enterprises to assist them in achieving their energy-efficiency targets. Supporting policies, such as information dissemination, government and public recognition, audits and assessments, exemption from taxes or regulations, and financial assistance and incentives are the key motivational element to encourage enterprises to participate fully in the Voluntary Agreement program. Shandong ETC selected potential supporting policies that are suitable for China’s conditions and that will promote enterprises’ participation in the Voluntary Agreement program, as well as aid enterprises to achieve the energy-conservation targets. The supporting policies are: “1) give priority consideration to the two pilot enterprises under existing preferential policies, 2) coordinate the provision of guarantees by the provincial guarantee company for loans and other financial activities required for energy-efficiency projects at the pilot enterprises, 3) use various media to publicize the energy-conservation achievements and contributions of the pilot enterprises, 4) organize intermediary organizations to provide the pilot enterprises with policy, technical, management, and other advice and services, and 5) upon evaluation, exempt the pilot enterprises from monitoring of the status of energy utilization” (Shandong ETC, 2003). In addition to these supporting policies offered by the local government, the national level SETC will be requested to provide the following supporting policies: “1) for energy-conservation benefits realized through energy-conservation projects, and in accordance with resources comprehensive-utilization policy, investigate and propose recommendations for preferential policies to encourage energy conservation, 2) give priority support to projects undertaken by the pilot enterprises that fulfill the criteria set by national preferential policies, 3) grant a portion of research and development costs for projects undertaken by the pilot enterprises that have significant results in energy and resource conservation and comprehensive utilization, short payback times, and outstanding economic and social benefits, to support enterprises to carry out energy-conservation research and development, 4) give priority to the pilot enterprises when bringing in foreign investment capital, 5) award pilot enterprises the honorable title of China Energy-Efficiency Voluntary Agreement Pilot Enterprise” (Shandong ETC, 2003).