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: 8 | ARCHIVED on 07-Jan-2021 | ISR45089 | Implementing Agencies: Huaxia Bank, People's Republic of China, Hebei PMO, China National Energy Conservation Center 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: Original Closing Date: 30-Apr-2022 Revised Closing Date: 30-Apr-2022 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 €Satisfactory €Moderately Satisfactory Overall Implementation Progress (IP) €Moderately Satisfactory €Moderately Satisfactory Overall Risk Rating €Moderate €Moderate Implementation Status and Key Decisions The key functions of the project to verifying Disbursement Linked indicators for the two Program for Results (PforR) projects (i.e. "Innovative Financing for Air Pollution Control in Jing-Jin-Ji (JJJ) Region Project" and "Hebei Air Pollution Prevention and Control Program"), which this project supports are being satisfactorily fulfilled. These verification functions are now completed regarding the Results-based Hebei Pollution Prevention and Control Program, which was closed on December 31, 2019. The verification support for Hua Xia Bank has enabled it to successfully achieve the targets of disbursement-linked indicators, and supported the increased disbursement rights. Project activities supporting market-based priority energy efficiency, coal cap control programs, development of financial products for green energy finance and air pollution control are also 1/7/2021 Page 1 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) progressing on track but overall slower than planned. It was agreed during the implementation support mission that project management offices will accelerate the procurement process. 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 IN00939989 ►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 activities are under improved and implementation. standardized Date 16-Mar-2017 11-Jun-2020 04-Dec-2020 31-Dec-2020 Contracts were signed in May 2020. Core methodologies will be formulated by 2021 Q1. Comments: All methodologies will be done by 2022 Q1 IN00939990 ►Market-based mechanisms for energy savings designed and piloted (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contracts were signed in No Market-based Contracts were signed May 2020. Market-based EE mechanism for energy in May 2020. Value Pilot EE trading scheme trading mechanisms savings designed or Pilot EE trading will be formulated by designed and piloted piloted scheme will be 2021 Q2. 1/7/2021 Page 2 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) formulated by 2021 Q2. Date 16-Mar-2017 11-Jun-2020 04-Dec-2020 31-Mar-2022 Contracts were signed in May 2020. Comments: Pilot EE trading scheme will be formulated by 2021 Q2. IN00940106 ►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 11-Jun-2020 04-Dec-2020 30-Apr-2022 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 IN00940107 ►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 64.00 64.00 1,200.00 Date 16-Mar-2017 09-Dec-2019 04-Dec-2020 30-Apr-2022 6 international study tours have been conducted. 64 people trained. Comments: IN00940110 ►Energy savings M&V methodologies and guidelines developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 25.00 Date 16-Mar-2017 11-Jun-2020 04-Dec-2020 30-Apr-2022 The core activity will formulate about 8 methodologies by 2021 Q1. Comments: All methodologies will be done by 2022 Q1. IN00940112 ►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 11-Jun-2020 04-Dec-2020 31-Dec-2020 Pilot EE trading scheme will be formulated by 2021 Q2. Comments: 1/7/2021 Page 3 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Component 2. Supporting result-based green energy financing in Jing-Jin-Ji Region IN00940108 ►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 11-Jun-2020 04-Dec-2020 30-Apr-2022 The last innovative financial product-green bond, has been issued and verified in April 2020. Comments: IN00940111 ►Case studies for the JJJ and Hebei PforR operations developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 16-Mar-2017 11-Jun-2020 04-Dec-2020 30-Apr-2022 IN00940113 ►CO2 emissions avoided (thousand tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,500.00 2,840.00 1,969.00 Date 16-Mar-2017 11-Jun-2020 04-Dec-2020 30-Apr-2022 IN00940114 ►Annual energy savings(Thousand tce) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,024.00 1,164.00 800.00 Date 16-Mar-2017 11-Jun-2020 04-Dec-2020 30-Apr-2022 Intermediate target largely exceeded Comments: Component 3. Supporting result-based environmental program in Hebei Province IN00940109 ►Capacity for environmental results monitoring improved (Number of people trained) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 480.00 480.00 480.00 Date 16-Mar-2017 09-Dec-2019 04-Dec-2020 30-Apr-2022 The target number 480 is met. Comments: Performance-Based Conditions Data on Financial Performance Disbursements (by loan) 1/7/2021 Page 4 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Developing Market-based Energy Efficiency Program in China (P132748) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132748 TF-A4256 Effective USD 17.80 17.80 0.00 5.22 12.58 29% 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 30-Apr-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/7/2021 Page 5 of 5