DECISION ON

APPROVAL OF NATIONAL TARGETED PROGRAM ON ENERGY EFFICIENCY AND CONSERVATION PHASE 2012 - 2015

PRIME MINISTER

Pursuant to the Law on organization of the Government passed on December 25, 2001;

Pursuant to the Law on Energy Efficiency and Conservation passed by the National Assembly 12 on June 17, 2010;

Pursuant to the Resolution Official reference no. 13/2011/QH13 passed by the National Assembly on November 9, 2011 on Vietnam National targeted program on energy efficiency and conservation phase 2011 – 2015;

Pursuant to the Decision Official reference no. 135/2009/QD-TTg approved by the Prime Minister on November 4, 2009 on the issuance of management and execution regulations of National targeted programs;

Pursuant to the Decision Official reference no. 2406/QD-TTg approved by the Prime Minister on December 18, 2011 on issuance of List of National targeted program phase 2011 – 2015;

At the proposal of Minister of Industry and Trade and Minister of Planning and Investment.

DECIDES:

Article 1. Approval of National targeted program on energy efficiency and conservation phase 2012 – 2015 with the following content:

I. GOAL, SCALE AND IMPLEMENTATION DURATION

1. Goals and objectives:

a) Goals:

Deploy in synchronization the programs in depth, remove barriers, create breakthrough changes in improving end-use efficiency, focus on the areas of: Industrial manufacturing; large energy-consuming buildings; transportation; services, household; popularization of energy saving, high performance equipment and facility.

- Through the programs, achieve the goal of total energy saving in the whole country and in large energy consuming individual sectors, bring social and economic benefits; contribute to reduce investment in energy supply system development, ensure energy security, environmental protection; rational exploitation of energy resources, and sustainability for socio-economic development.

b) Objectives

- Strengthen dissemination, popularization and awareness raising to the majority of people, agencies, offices; creating awareness for energy efficiency, conservation, and environmental protection.

- Achieve savings from 5 - 8% of the total energy consumption of the country in the period 2012 - 2015 compared to forecast energy demand in the national electricity development plan period 2011 - 2020, taking into account the year 2030 which has been approved by the Prime Minister, equivalent to 11 million TOE (tons of oil equivalent) to 17 million TOE in the period 2012-2015.

– Form a network of law enforcement on energy efficiency and conservation, implementing energy efficiency programs at the central and local levels; arrangement of training and issuing certification of energy management to more than 2,000 people in the field of industrial production and about 500 people in the field of building management; training and issuing certification of energy audit to approximately 200 people.

- Extensive use of high-performance equipment, replacing low-performance equipment, proceed to remove obsolete equipment and technology. Application of advanced technical standards and norms in order to improve energy efficiency in production and business activities of enterprises; achieve at least 10% of reduction in energy intensity in energy-intensive industries of which:

+ Steel: Reduce the average energy consumption for the production of 01 ton of steel components from 179 kgoe in 2011 to 160 kgoe in 2015;

+ Cement industry: Reduce the average energy consumption for the production of 01 ton of cement from 97 kgoe in 2011 to 87 kgoe in 2015;

+ Textile and apparel industry: Reduce the average energy consumption for the production of 01 ton of fiber in 2011 was 773 kgoe to 695 kgoe in 2015.

- Implementation of mandatory management in compliance with Vietnamese Construction Standards "Energy efficiency construction buildings" from 2012, for 100% of new or renovated buildings within the scope of the Standards. Deployment of energy saving technology solutions in public lighting, application of high-performance lighting, energy saving for 100% of the new public lighting;

- Development of transportation system to meet the transport demand with increasingly high quality, save fuel and reduce environmental pollution. Reinforce the application of new technologies, renewable energy to replace traditional fuels in transportation. Strive to have public transport in 2015 meeting the 10 - 15% of travel demand in large urban areas.

2. Scale and scope: The program has direct impacts on all sectors, fields and activities that use energy on a national scale.

3. Duration: From 2012 to the end of 2015.

II. LIST OF PROJECTS

1. Project 1: Strengthening education, information dissemination, community mobilization, awareness raising, promoting the use of energy efficiency and conservation, environmental protection. Project consists of three components:

a) Dissemination and awareness raising on energy efficiency and conservation to the people.

- Content:

+ Maintain, regularly update and improve the quality of information associated with energy saving, energy efficiency on the website of the program;

+ To propagate regularly on radio programs, national and local TV on energy efficiency and conservation. Mobilize the active participation of many provincial departments: Industy and Trade, Construction, Transport, Agriculture and Rural Development, in collaboration with the local media to widely disseminate information to the people in all regions of the country;

+ Mobilize the participation of unions, social and political institutions at central and local level, and coordinate with state management agencies to arrage trainings, awareness raising workshops for the general public, for employees of industrial enterprises and businesses on the provisions of the law in the field of energy efficiency; on technology solutions, facilities and equipment skills in order to save energy and costs;

+ Annually organize exhibitions, product display, business competition on energy efficiency, energy saving measures;

+ Publish and dissemination of information publications, documents, leaflets, brochures, advertisements, manuals on domestic and international experience in energy efficiency and conservation, technology classification, applied technology; information on the implementation of projects in the program, case study researches.

- Implementing Agency:

Ministry of Industry and Trade presides over coordination with Ministry of Information and Communications, Vietnam Television, Voice of Vietnam, Union of Science and Technology of Vietnam, Vietnam Women's Union, Ho Chi Minh Communist Youth Union, People's Committees at the provincial level.

b) Embed educational programs on energy efficiency and conservation in the national education system.

Content:

+ Keep updating and improving the curriculum on energy efficiency and conservation in accordance with the level of education as required by the program;

+ Develop detailed plans, training for teachers and lecturers from central to local levels on integrated teaching methods, including the content of energy efficiency and conservation in subjects suitable to each level.

- Implementing Agency:

Ministry of Education and Training presides over coordination with Ministry of Industry and Trade and other Ministries and agencies, People's Committees at provincial level.

c) Pilot model of large-scale alternative energy forms and energy saving model family.

- Content:

+ Continue with promoting energy-saving lamps, renewable energy lights, solar and biomass/biogas water heating equipment, energy saving products;

+ Development of energy saving household pilot model  and large-scale renewable energy pilot model (such as solar, biogas, etc.), and widespread popular models;+ Organization of campaigns, energy saving family contests, creating popular movement, introducing solutions and using high-performance appliances in every household.

- Implementing Agency:

Ministry of Industry and Trade presides over coordination with Ministry of Agriculture and Rural Development, Ministry of Science and Technology, Union of Science and Technology of Vietnam, People's Committees at all local levels  selected for the project implementation; Electricity of Vietnam, the Vietnam Women's Union, Ho Chi Minh Communist Youth Union, and Vietnam Farmers' Association.

2. Project 2: Development and dissemination of high-performance, energy-saving equipment, gradual phase out of low-performance equipment. Project consists of four components:

a) Develop energy performance standards and implement mandatory energy labeling program.

- Content:

+ Develop a plan and organize implementation of the labeling program and energy performance standards in the form of comparable energy labeling and certification labels;

+ Update, revise, develop and promulgate standards for energy performance. The application from voluntary energy labeling to mandatory labeling in accordance with the roadmap has been approved by the Prime Minister;

+ Capacity building and training human resources for the implementing agencies; monitor and evaluate of the standard and energy labeling programs;

+ Market research, building database for standards and energy labeling programs.

- Implementing Agency:

Ministry of Industry and Trade presides over coordination with Ministry of Science and Technology, Ministry of Construction, Ministry of Transport, Union of Science and Technology of Vietnam, and Consumers Association.

b) Provide technical assistance to manufacturers, assembly factories, importers, retailers of high-performance products and to testing laboratories of energy performance in the country.

- Content:

+ Organization of workshops and seminars to provide information on minimum energy performance standard and energy labeling for equipment that are on the list of equipment to be labeled to export and import management agencies, manufacturers, importers and retailers in the country;

+ Provide support through training and technical assistance to help manufacturers overcome technological barriers and carry out research and development of high-performance products;

+ Organize competitions and award ceremonies to manufacturers with high-performance products, programs that promote high-performance products in supermarkets and other retailers;

+ Support manufacturers in investment in technology transfer, applied production lines to manufacture products that meet energy performance standards;

+ Support through training and technical assistance; investment in construction, upgrade energy performance testing facilities.

- Implementing Agency:

Ministry of Industry and Trade presides over coordination with Ministry of Science and Technology, Ministr of Construction, and Ministry of Transport.

c) Support businesses in the application of standards, technical norms, improve performance for better energy efficiency and conservation.

- Content:

+ Assess energy saving potential, build energy use norm in production for a selected number of areas, including: production of steel, building materials, cement, generation of energy, mining, production of paper, rubber, chemicals, food/beer, textiles, etc... create roadmap and action plan for energy efficiency;

+ Building standards and regulations on energy use, encourage or make it mandatory for businesses to save energy, save costs in accordance with the Law on energy efficiency and conservation

+ Implement support activities such as energy audits; survey, analyze possibilities and potentials for energy saving in large energy comsuming industries, and small & medium enterprises in order to optimize production process, save more energy, and overcome wasteful use of energy;

+ Support for improving the performance of the production line: Support investment in replacement, improve performance of old equipment as part of the energy efficiency plan; assist in determining the optimal parameters of the new equipment, production lines with the installation of new equipment;

+ Organize, develop and form a system that provides information and best practices of case studies in energy efficiency, disseminated through the Internet or seminars.

- Implementing Agency:

Ministry of Industry and Trade presides over coordination with Ministry of Science and Technology, People's Committees at provincial level, and state corporations.

d) Develop energy management standards and model in energy using facilities.

- Content:

+ Implement support projects to the end of 2015 on capacity building and put into practice in order to guide and support designate energy users to develop energy management systems, in compliance with the Law on energy efficiency and conservation;

+ Encourage and support small and medium-sized industrial enterprises with annual energy consumption lower than 1000 TOE to apply energy management model.

+ Develop management and supervision system of power consumption in production of selected industrial facilities, encourage and advance to the mandatory application of energy consumption rate per unit of production for a number of large energy consuming industries, implementation of the provisions of the Law on efficiency and conservation;

+ Invest and put into operation two training centers for national energy management in Hanoi and Ho Chi Minh City.

- Implementing Agency:

Ministry of Industry and Trade presides over coordination with People's Committees at the provincial level, state corporations, research institutions, universities and energy service providers.

3. Project 3: Energy saving and efficiency in buildings. Project consists of three components:

a) Strengthen the application of energy saving standards in the new construction and renovation for large building s

- Content:

+ Enhance supervision, promote the building design to ensure energy saving and efficiency in Vietnamese construction standards "The use of energy saving and efficiency" standards of building and documents guiding the Law on energy saving and efficiency;

+ Provide training and capacity building to managers, energy managers, design consultants, evaluation, monitoring, etc... in the construction sector in order to implement the application of energy saving technologies in the process of planning, design, appraisal, approval, execution and management of construction planning and design of buildings in accordance with building codes;

+ Develop and manage databases on energy consumption of buildings and construction activities; building energy use norms for different types of buildings;

+ Monitor the application, compliance of building codes for new large buildings.

- Implementing agency:

The Ministry of Construction presides over coordination with relevant ministries, departments and People's Committees at the provincial level.

b) Apply energy saving solutions, technology, equipment, materials; organize contests for green energy saving building, energy saving.

- Nội dung: Content:

+ Select and deploy application of energy saving solutions, technology, equipment, and materials in buildings.

+ Develop sample projects to replace low-performance equipment in buildings with high-performance equipment.

+ Develop sample projects on energy efficiency and conservation in buildings.

+ Develop and gradually apply building energy management model.

+ Develop, update and manage database use, energy management in large buildings.

+ Organize contests and reward certificates of national energy efficiency buildings; organize design contests, application of energy saving measures in buildings.

- Implementing agency:

The Ministry of Construction presides over coordination with relevant ministries, departments and People's Committees at the provincial level.

c) Energy efficiency in public lighting.

- Content:

+ Develop and promulgate regulations, technical standards on energy saving lighting;

+ Apply management solutions, usage of control devices in public lighting system to save energy;

+ Develop pilot models of high-performance public lighting, energy saving lighting.

- Implementing Agency:

The Ministry of Construction presides over coordination with other ministries, departments and People's Committees at the provincial level.

4. Project 4: To promote energy efficiency in the transportation sector. Project consists of three components:

a) Energy saving in the planning and construction of transportation infrastructure.

- Content:

+ Formulate of instruction for the integration of energy-saving projects into transportation planning projects;

+ Formulate instruction for the implementation of energy saving measures in project design and executions of transportation;

+ Develop public transport system, large volume passenger transport in order to improve commuting conditions for the people, improve energy efficiency and environmental protection.

- Implementing Agency:

The Ministry of Transport presides over coordination with other ministries, departments and People's Committees at the provincial level.

b) Improve energy efficiency in organizations and exploit the transportation system.

- Content:

+ Establish and organize separation of traffic lanes to reduce traffic congestion in urban areas and save energy;

; + Develop and deploy projects coordinating modes of freight transport, prioritize development of large fuel efficient, environmental friendly transport modes; rational exploitation of railway and waterway transport;

+ Develop and apply standards for minimum fuel consumption rate for a number of transport mean and the applicability of each stage;

+ Popularise and disseminate driving skills of fuel-efficient and environmentally friendly vehicles; raise awareness of fuel efficiency in transport;

+ Develop and reinforce the management, maintenance and repair of facilities and equipment in order to improve the efficiency of transportation facilities, equipment;

+ Implement energy labeling program for transportation group.

- Implementing Agency:

The Ministry of Transport presides over coordination with other ministries, departments and People's Committees at the provincial level.

c) Application of new technology, renewable energy in transport.

- Content:

+ Application of technical innovations and new technologies in transportation in order to save energy, reduce emissions of pollutants into the environment;

+ Deploy applications of renewable energy, alternative energy to replace traditional fuels (CNG, LPG​​, LNG, biofuels, electricity, other potential energy forms) for vehicles, transport facilities in order to improve energy efficiency.

- Implementing Agency:

The Ministry of Transport presides over coordination with other ministries, departments and People's Committees at the provincial level.

III. PROGRAM FUNDING PLAN PERIOD 2012 - 2015

1. Total funding of the program is 930 billion VND.

2. Funding source:

a) Central budget funding: 350 billion VND, consisting of:

- Development investment funding: 80 billion VND;

- Operation funding: 270 billion VND.

b) Local budget funding: 300 billion VND, consisting of:

- Capital funding from international organizations and foreign countries: 180 billion;

- Others: 100 billion.

IV. SOLUTION FOR PROGRAM IMPLEMENTATION

1. Solutions for the mobilization and use of funds:

- The program funding is mobilised from the following sources: the state budget, funding of organizations and individuals at home and abroad, funds from enterprises and other lawful sources;

- The program fund is allocated to management activities, implementation of the project's economic career, partial support to business projects in investing in the renovation and replacement of equipment, energy efficiency improvement of the production line, approved annually by the Steering Committee;

- The use of funds must be consistent with the provisions of the current law.

2. Solutions for science, technology and training investment:

- Selectively invest in strengthening capacity for energy design consultancy, testing, audit organizations;

- Integrate the research content of energy efficiency and conservation with State science and technology program for the period 2011 - 2015;

- Investment in training and capacity building for managers, particularly for local authorities and designated energy using businesses on energy efficiency and conservation;

- Investment in communication, information, advocacy, education and community awareness raising of energy saving;

- Programme Steering Committee to cooperate with other ministries, in proposing topics for developing new technology for energy saving products, developing policies energy efficiency and conservation through annual science and technology funding of the ministries.

3. Solutions for international cooperation:

- Strengthen international cooperation in the field of training and capacity building for staffs operating in the field of energy efficiency and for consulting organizations, through direct investment, scientific conferences, study tours, delegations to survey abroad, provide consultation to establish standard laboratories;

- Joint policy development, supplement and improve the institutional framework and standards related to the field of energy efficiency and conservation;

- Coordinate and propose the formation of international treaties relating to energy efficiency and conservation;

- Coordinate with the testing network of the ASEAN region and other countries in the world for product testing and energy saving;

 – Coordinate with the ASEAN energy network for granting ASEAN awards to energy-saving buildings, eco-villages.

V. PROGRAM IMPLEMENTATION

1. Program Steering Committee:

- Establishment of the Program Steering for the National target program on energy efficiency and conservation headed by the Minister of Industry and Trade; representatives from other ministries: Ministry of Construction, Ministry of Transportation, Ministry of Finance, Ministry of Education and Training, Ministry of Information and Communications, Ministry of Science and Technology, Ministry of Planning and Investment, Ministry of Finance, Ministry of Natural resources and Environment, Ministry of Justice, Vietnam Union of Science and Technology are members of the Steering Committee.

- Minister of Industry and Trade decided to set up and issue the terms of reference of the Steering Committee for the National targeted program on energy efficiency and conservation.

- Office of the Program Steering Committee is based at the Ministry of Industry and Trade.

2. Implementation responsibility:

Ministry of Industry and Trade: A standing agency of the Programme Steering Committee, presides over coordination with other ministries, departments, local authorities and associated organizations to implement the program; coordinate, monitor, inspect, report, and evaluate the resulting performance of all activities of the program; implementation of assigned projects; be responsible for the development and approval of the mechanisms and criteria for support, allocation of funds for each particular project after consultation with the Ministry of Planning and Investment, Ministry of Finance and other Ministries to manage project components of the program;

- Ministries, departments, organizations, enterprises of all economic sectors to participate in the program; develop outline for the implementation of each specific project to be submitted to the Steering Committee for review, approval and summarization to the annual implementation plan;

- People's Committees  at the provincial level:

+ Compilation of policy on local energy efficiency and conservation management;

+ Coordinate the implementation of local projects.

3. Managment, monitoring and evaluation:

- Steering Committee for the National targeted program on energy efficiency and conservation is responsible for the coordination, inspection of all activities of the program to achieve the objectives of each project and for the overall resulting performance;

– Implementing agencies presiding each project are responsible for project activities coordination, inspection and be responsible for the results of the designated project.

Article 2. This Decision takes effect from the signing date and replaces Decision No. 79/2006/QD-TTg April 14, 2006 of the Prime Minister approving the National targeted program on energy efficiency and conservation.

3. Ministers, heads of ministerial-level agencies, heads of Government agencies, chairmen of the People's Committees at provincial level, the concerned organizations and individuals who are responsible for the implementation of this Decision ./.