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Sustainable Low-Carbon City Development in China
data security measures, a clear definition of institutional responsibilities, and development of phased plans for piloting prior to scaling up.
Expanding the Role of the Market in Delivering Energy Efficiency Having bolstered enterprise interest in energy efficiency investments through administrative measures, provincial governments need to do more to ensure that local enterprises can actually undertake the investments requested of them. While the government provides some concessional finance to encourage investment, by far the largest portion of financing for investment projects must come through the market. Currently, however, many enterprises face serious difficulty in packaging projects in ways that can be accepted by financiers and in securing finance. As a result, many financially attractive potential projects remain unimplemented. Except for a limited number of cases where enterprises possess all the necessary financing and expertise, three key actors are required to deliver energy efficiency project investment through the market: the enterprise, energy efficiency technical and project expert groups, and financiers such as banks. To bring together these three actors, the following areas need to be addressed: (i) developing the energy efficiency industry, (ii) increasing the collaboration with financial sector institutions to foster market-based investment, and (iii) expanding the use of energy pricing tools. Experience in China and elsewhere has shown that rapid development of the energy efficiency service industry and engagement of financial institutions in the energy efficiency business will not just automatically happen. Steady support and targeted assistance are required. Developing the energy efficiency service industry. While independent institutes and companies involved in the details of identifying, appraising, and implementing energy efficiency projects form a vibrant industry in some parts of China, this industry remains very underdeveloped in others, creating a blockage to rapid progress. Improving the capacity of local companies in technical energy efficiency work, such as auditing, technology assessment, project design, procurement, and commissioning, is crucial. Also important, however, is development of associated business expertise for packaging projects so that enterprises and financiers can accept them, and for helping to bring projects to financial closure. Provincial governments, and, to a large extent, municipal governments, can help with formal policy support and legitimization of the industry, including the EPC business, by using government contracting and contracting procedures to bolster the industry (see the section “Public Buildings� in chapter 7), by fostering training and information exchange,