Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 03/04/2011 Report No.: AC6151 1. Basic Project Data Country: China Project ID: P119357 Project Name: China Energy Efficiency Promotion in Industry Task Team Leader: Alberto Ugalde Ang Co GEF Focal Area: Climate change Global Supplemental ID: Estimated Appraisal Date: March 10, 2011 Estimated Board Date: May 31, 2011 Managing Unit: EASCS Lending Instrument: Specific Investment Loan Sector: District heating and energy efficiency services (100%) Theme: Climate change (100%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 4.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 Borrowing Agency 4.11 Local Sources of Borrowing Country 16.00 20.11 Environmental Category: C - Not Required Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The project development objective is to strengthen the institutional capacity for both the management and technical aspects of rational energy use in key industrial sectors in China, thereby contributing to improvements in energy efficiency and the reduction of greenhouse gas emissions. 3. Project Description The project has four components, which are briefly described below: COMPONENT 1: POLICY SUPPORT This component will support studies to strengthen the implementation of the revised Energy Conservation Law (EC Law) as well as related regulations and energy standards within the mandate of the Ministry of Industry and Information Technology (MIIT), including: (a) domestic and foreign industrial energy efficiency policies; (b) energy management institutions of key energy-consuming industrial enterprises; and (c) Page 2 industrial energy performance evaluation system. The outputs of this component may also provide reference for the development of training materials for capacity building of energy managers (see project Component 2). This will foster "institutionalization" of a culture of energy management and sustainable practices in industrial enterprises. COMPONENT 2: CAPACITY BUILDING FOR ENERGY MANAGERS This component will support the development of standardized training modules to meet the different needs of energy managerial personnel in major energy consumption enterprises, as prescribed in the revised EC Law, and taking into account relevant national laws, regulations, standards, and requirements as well as global best practices on advanced energy-saving techniques. In addition, this component will develop standardized training programs and recommend a certification scheme for energy managers in industries. This component will also provide sub-grants to up to four pre- selected training centers in Beijing, Inner Mongolia, Jiangsu, and Sichuan for (a) delivery of training programs to energy managerial personnel, and (b) implementation of demonstration projects on setting up energy management programs (see project Component 3). This component will also train the trainers of pre-selected training centers in terms of training course design, delivery, evaluation, and assessment (including case studies). The capacity building process--that encourages "learning by doing" or putting into practice what is learned in principle--will enhance the in-house expertise of energy managers as the focal points for all activities pertaining to rational energy use in enterprises down to the factory-floor level. COMPONENT 3: DEMONSTRATION PROJECT IMPLEMENTATION This component will finance specialized technical assistance to enterprises participating in demonstration projects. This component will be implemented in two phases in cooperation with the training centers (selected in Component 2). The first phase will select energy intensive industry sectors such as iron and steel, cement, petrochemical, and non-ferrous metal industries. At least 20 enterprises will be recruited by the training centers to voluntarily participate in setting up and implementing enterprise energy management programs. The training centers will provide initial guidance to the participating enterprises, and brief them on the objectives and methodologies of the energy management program. During this phase, the participating enterprises will be encouraged to sustain the energy management program and eventually implement energy efficiency projects. The first phase will focus on gauging the energy management needs of enterprises, demonstrating the implementation issues, and assessing the strategies for success. The second phase of the demonstration project will further advance the implementation of the energy management program in eight selected enterprises. For the selected enterprises the training centers will provide specialized technical assistance such as development of comprehensive manuals, policies, procedures, and action plans or energy efficiency roadmaps for establishing an "umbrella framework" for industrial energy management, efficiency, and conservation programs that are customized to the needs of the participating enterprises. The demonstration project will assist the selected enterprises to establish the energy management program framework and procedures that Page 3 may include management and technical aspects of rational energy use. The end-result of the second phase of the demonstration project will be a well-established framework in the participating enterprises that can be used as an innovative approach for continual improvement of energy efficiency and increase compliance with the EC Law. COMPONENT 4: INFORMATION DISSEMINATION This component will support the design of promotion and awareness building mechanisms to send the message out to the enterprises as well as to begin the process of influencing government policy support to rational energy use. Both international and Chinese best practices and case studies will be collected and disseminated through educational materials or seminars targeting different groups of enterprises, with the intention of demonstrating financial and environmental benefits that could be achieved by adopting rational energy use in China. A series of workshops or annual forums will be organized for government officials, and energy managers and technical staff from industrial enterprises to promote the training programs (Component 2) and present the results of the demonstration projects (Component 3)--also as reference for follow-on projects. This component will also support the creation and maintenance of a project website as a platform for all relevant stakeholders to share and communicate information. The information and dissemination activities of the project will assist in increasing awareness of industries with practical approaches to improve energy performance, and incorporate a culture of energy management into day-to-day business operations. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The projects will be implemented in selected sectors and enterprises in China. 5. Environmental and Social Safeguards Specialists Mr Youxuan Zhu (EASTS) Mr Feng Ji (EASCS) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X Page 4 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project is classified as Category C project as it is expected to have minimal or no adverse environmental impacts. The project will support industrial enterprises through training and TA to develop in-house expertise for implementing an umbrella framework of comprehensive energy management, conservation, and efficiency programs. The project is only a technical assistance which does not include any feasibility studies for downstream physical investments. Energy efficiency investments resulting out of the training programs and demonstration projects will not be financed by the project. Considering the project nature and its potentially negligible environmental impacts, no EA instrument is required for this project. As a matter of good practice, the project would integrate into its training program relevant safeguards policy considerations and good practices that can contribute to the capacity building of industries and/or improve the environmental performance of their energy management systems and future action plans. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project would contribute to improvements in energy efficiency and the reduction of greenhouse gas emission by strengthening the institutional capacity for both the management and technical aspects of rational energy use in key industrial sectors in China. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The MIIT, through its Department of Energy Conservation and Resource Utilization (DECRU), will be the executing agency responsible for implementation of the project. The MIIT has established a Project Management Office (PMO) that will undertake the day-to-day and overall coordination, supervision, and management of the project. An MIIT official and a staff member (under the DECRU) have been appointed as (a) the PMO Project Director who will be responsible for project coordination and implementation, judicious use of project resources, and timely delivery of project outputs; and (b) the Project Administration Assistant who will support the Project Director. In addition, the PMO consists of an Executive Director and two staff members. A Project Steering Committee (PSC) will be established to play an advisory role in the overall governance of the project, and realization of the project's objectives. Page 5 During project implementation, training program integrating relevant safeguards policy considerations into the energy efficiency programs would be provided which can contribute to the capacity building of project beneficiaries. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Not applicable B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's N/A Page 6 Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? N/A All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? N/A Have costs related to safeguard policy measures been included in the project cost? N/A Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? N/A Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? N/A D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Alberto Ugalde Ang Co 03/03/2011 Environmental Specialist: Mr Feng Ji 03/03/2001 Social Development Specialist Mr Youxuan Zhu 03/03/2011 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Peter Leonard Comments: The PAD stage review of this project has been transferred to the SD Manager of WBOB. Thus, there is no need for clearance from COSU. Sector Manager: Mr Ede Jorge Ijjasz-Vasquez 03/03/2011 Comments: