With the publication of a new list of energy-saving products for
government procurement, the authorities have officially put into
practice a policy that makes government procurement of such goods
compulsory.
This move will surely help raise the government's own efficiency
as a big energy consumer.
Yet, more importantly, massive green orders from governments at
all levels will give a huge boost to the national campaign to raise
energy efficiency.
The government has planned to cut the country's energy intensity
by 20 percent between 2006 and 2010. That is a tough task for a
developing country like China which is undergoing fast urbanization
and industrialization.
The green procurement practice can serve the energy-saving goal
in two ways.
On one hand, large orders from the government will directly
improve the bottom line of enterprises that are passionate about
energy-saving. It was reported that in 2006, the country's total
government procurement was 350 billion yuan ($47 billion) and the
figure is expected to top 500 billion yuan this year.
An increasingly bigger government procurement cake will provide
considerable economic incentive for enterprises which are able to
deliver products more energy-saving than their competitors.
On the other hand, by becoming an energy-saving champion, the
government will set a good example for the whole society to go
green.
At present, products of higher energy efficiency are usually
more expensive than traditional ones. An expensive price tag more
than often blinds consumers to the overall advantages of
energy-saving products. It is therefore not easy to persuade
consumers to accept such products that demand high prices but in
the long-term are a saving.
Compulsory government purchases of energy-saving products will
show the public the government's resolve on energy conservation. As
the government pays an extra sum for green products, its commitment
to changing the country's growth pattern into an energy-saving,
environment-friendly and sustainable one will be more credible
too.
Seeing is believing. If the government can substantially cut its
energy bill through massive purchase and use of energy-saving
products, Chinese consumers will not wait long before embracing
those products.
(China Daily December 13, 2007)