Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Developing Market-based Energy Efficiency Program in China (P132748) EAST ASIA AND PACIFIC | China | Energy & Extractives Global Practice | Global Environment Project | Investment Project Financing | FY 2017 | Seq No: 11 | ARCHIVED on 22-Dec-2022 | ISR51056 | Implementing Agencies: China National Energy Conservation Center, Hebei PMO, Huaxia Bank, People's Republic of China Key Dates Key Project Dates Bank Approval Date: 16-Mar-2017 Effectiveness Date: 05-Sep-2017 Planned Mid Term Review Date: 12-Apr-2021 Actual Mid-Term Review Date: 07-Jun-2021 Original Closing Date: 30-Apr-2022 Revised Closing Date: 31-Oct-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to support development and implementation of China'€€s priority energy efficiency and environment programs, with a focus on improving the results measurement and verification system and developing market-based mechanisms. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Supporting market-based priority energy efficiency and coal cap control programs:(Cost $8.80 M) Component 2. Supporting result-based green energy financing in Jing-Jin-Ji Region:(Cost $4.50 M) Component 3. Supporting result-based environmental program in Hebei Province:(Cost $4.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO €Moderately Satisfactory €Moderately Satisfactory Overall Implementation Progress (IP) €Moderately Unsatisfactory €Moderately Unsatisfactory Overall Risk Rating €Moderate €Moderate Implementation Status and Key Decisions Following the closing date extension granted in April 2022 and the subsequent implementation support mission in May 2022, the project implementation is on track. The closing date has been extended for 18 months to October 31, 2023, allowing sufficient time to carry out and complete key activities to meet the PDO and results indicators by the revised closing date. Three implementing agencies and their Project Management Offices (PMOs) agreed to a detailed action plan to expedite implementation progress and disbursement, complete ongoing activities as early as possible, and carry out new activities with the remaining funding before the closing date. Across Component 1 and 3, new activities for US$3.2 million have been added to the revised procurement plan through technical discussions with PMOs. 12/22/2022 Page 1 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance €Low €Low €Low Macroeconomic €Moderate €Moderate €Moderate Sector Strategies and Policies €Low €Low €Low Technical Design of Project or Program €Moderate €Moderate €Moderate Institutional Capacity for Implementation and €Moderate €Moderate €Moderate Sustainability Fiduciary €Moderate €Moderate €Moderate Environment and Social €Low €Low €Low Stakeholders €Moderate €Moderate €Moderate Other -- €Moderate €Moderate Overall €Moderate €Moderate €Moderate Results PDO Indicators by Objectives / Outcomes To support development and implementation of China’s priority EE and environment program IN01164994 ►Energy savings measurement, reporting and verification system improved and standardized (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contracts signed in MRV system for Contracts signed in May May 2020 and energy savings Value n.a. 2020 and activities are activities are under improved and under implementation. implementation. standardized Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 IN01164999 ►Market-based mechanisms for energy savings designed and piloted (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contracts were signed Contracts were signed in in May 2020. A May 2020. national market-based A national market-based energy consumption energy consumption No Market-based rights trading scheme rights trading scheme is Market-based EE mechanism for energy is being designed Value being designed building trading mechanisms savings designed or building on lessons on lessons from pilot designed and piloted piloted from pilot schemes schemes that have been that have been implemented in nine implemented in nine provinces. provinces. 12/22/2022 Page 2 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 IN01165003 ►Energy and environment results verified for the Jing-Jin-Ji Region and Hebei Province (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Verification systems Verification systems for green energy Verification systems have have been established financing and been established and Value No results to be verified and have been environmental have been operational for operational for both programs in JJJ both P4R. P4R. Region and Hebei Province established Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 Verification systems have been established and have been operational for both P4R, with independent verifiers contracted. DLIs for the Innovative Financing for Air Pollution Control in JJJ PforR and the Hebei Comments: Air Pollution Prevention and Control PforR Operations were verified, including verification now fully completed in the case of the Hebei PforR which was closed on December 31, 2019 Intermediate Results Indicators by Components Component 1. Supporting market-based priority energy efficiency and coal cap control programs IN01164995 ►Capacity built for M&V system and market-based EE mechanism (Number of people trained) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 104.00 104.00 1,200.00 Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 6 international study tours have been conducted. 64 people trained. There was a capacity building workshop regarding the MRV held on March 3rd 2021 in NECC. The participants were NECC staffs and the consultants of the activity "Developing MRV principles", about 40 Comments: people were trained. Once MRV methodologies and energy saving trading scheme are finalized, training workshops will be organized to build capacity for the new methodologies and trading schemes. IN01165000 ►Energy savings M&V methodologies and guidelines developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 25.00 Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 6 methodologies have been developed. The PMO submitted a revised procurement plan in December 2021 to launch the procurement of a contract (NDRC-2019-17) to develop further MRV methodologies based on the MRV principles and guidelines formulated under another contract (NDRC-2019-16) signed in Comments: May 2020. The new contract is expected to increase the number of MRV methodologies to meet the end target. IN01165004 ►Energy consumption trading schemes designed and piloted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 12/22/2022 Page 3 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) A draft EE trading mechanism has been designed and under NDRC internal review. Comments: Component 2. Supporting result-based green energy financing in Jing-Jin-Ji Region IN01164996 ►Innovative financial products for green financing developed and piloted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 30-Apr-2022 The last innovative financial product-green bond, has been issued and verified in April 2020. Comments: IN01165001 ►Case studies for the JJJ and Hebei PforR operations developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 Huaxia has completed the case study of the operation of JJJ PforR Programs, drawing lessons from successes and difficulties met, resulting in recommendations for future similar projects. Hebei PMO will Comments: soon start procurement for the case study of the operation of Hebei PforR Program. IN01165005 ►CO2 emissions avoided (thousand tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,783.50 2,866.49 1,969.00 Date 16-Mar-2017 23-Dec-2021 23-Jun-2022 31-Oct-2023 IN01165006 ►Annual energy savings(Thousand tce) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,140.80 1,174.79 800.00 Date 16-Mar-2017 23-Dec-2021 23-Jun-2022 31-Oct-2023 Intermediate target largely exceeded Comments: Component 3. Supporting result-based environmental program in Hebei Province IN01164997 ►Capacity for environmental results monitoring improved (Number of people trained) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 720.00 720.00 480.00 Date 16-Mar-2017 31-Jan-2022 31-Oct-2022 31-Oct-2023 The target number 480 is over delivered. Comments: Performance-Based Conditions 12/22/2022 Page 4 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132748 TF-A4256 Effective USD 17.80 17.80 0.00 10.50 7.30 59% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132748 TF-A4256 Effective 09-Jun-2017 09-Jun-2017 05-Sep-2017 30-Apr-2022 31-Oct-2023 Cumulative Disbursements Restructuring History Level 2 Approved on 26-Apr-2022 12/22/2022 Page 5 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Related Project(s) There are no related projects. 12/22/2022 Page 6 of 6