Decision No. 79/2006/QĐ-TTg Approving the National Target Program on Rational and Efficient Energy Use

Pursuant to …;

Approves the Target National Programon Energy Efficiency and Conservation

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Electricity Law dated December 3, 2004;

Pursuant to Decree No. 102/2003/NĐ-CP dated September 3, 2003 of the Government on Energy Efficiency and Conservation;

At the proposal of the Minister of Industry,

DECISION:

Article 1Approves the Target National Program on Energy Efficiency and Conservation for the period 2006 - 2015, which includes the following main contents:

I. Objectives of the Program:

1. General objectives:

a) The Target National Program on Energy Efficiency and Conservation includes activities to encourage, promote, publicize to the community, scientific and technological advancements, and mandatory management measures aimed at implementing comprehensive activities related to energy efficiency and conservation throughout society.

b) Through the activities of the Program, specific targets for total energy savings will be achieved, reducing part of the investment in developing the energy supply system, bringing economic - social benefits; while contributing to environmental protection, rational exploitation of energy resources, and sustainable socio-economic development. - Strive to save from 3% to 5% of the total national energy consumption during the period 2006

2. Specific Objectives:

2010 and from 5% to 8% of the total energy consumption during the period 2011 - 2015 compared to current forecasts on energy development and socio-economic development under normal development scenarios, based on the following specific contents: - a) Forming and effectively operating a model for managing energy efficiency and conservation, including state management activities, management within enterprises, buildings, and social life: - Period 2006

2010: complete the construction and issuance of a comprehensive legal framework consistent with laws and subordinate legal documents related to energy efficiency and conservation. Prepare content for the National Assembly to consider the issuance of the Law on Energy Efficiency and Conservation during the period 2008

- Develop a model for managing energy efficiency and conservation to apply to practical activities for 40% of the number of key energy-consuming enterprises selected nationwide for the period 2006 - 2010; 100% of the number of key energy-consuming enterprises for the period 2011 - 2010.

- 2015 and expand its application to small and medium-sized enterprises. - Implement mandatory management according to the Vietnam Construction Standard "Energy-Efficient and Effective Energy-Using Buildings" for 100% of new buildings constructed from 2006. - Period 2006

- 2010: complete the establishment of mechanisms, policies, and issuance of energy price lists that align with regional and global energy pricing trends to ensure the goal of energy efficiency and conservation.

- Develop a model for managing energy efficiency and conservation to apply to practical activities for 40% of the number of key energy-consuming enterprises selected nationwide for the period 2006 - b) Widespread dissemination of high-efficiency equipment, gradually replacing low-efficiency equipment, eventually eliminating outdated technology equipment; reduce energy intensity in production; conserve energy in all social activities.

c) Maximize the capacity of means and equipment; minimize fuel consumption in transportation, pilot models of alternative fuel use in some provinces and major cities, limit emissions from vehicles, protect the environment.

II. Projects of the Program:

Group 1

Strengthening state management of energy efficiency and conservation, organizing a management system for energy conservation consisting of 01 Project:: 1. The first project: completing the legal framework on energy efficiency and conservation in industrial production, in the management of construction projects, in daily life, and for energy-using equipment.

- Issuing guidance documents for existing laws and decrees related to energy efficiency and conservation activities.

a) Content:

- Establishing mechanisms, policies, and energy price lists that align with regional and global energy pricing trends to ensure the goals of energy conservation, promoting the rational use of various forms of energy and domestic energy, reducing dependence on imported energy; completing and applying them during the period 2008 - 2009.

- Developing and issuing Vietnam Construction Standards on "Energy-Efficient and Effective Energy-Using Buildings".

- Developing and issuing 10 sets of energy performance standards for 10 types of equipment selected as the basis for labeling energy-efficient products for those products.

Drafting and submitting to the National Assembly for approval the Law on Energy Efficiency and Conservation during the period 2008

- Organizing a network for energy efficiency and conservation management at provincial levels (including the organization and improvement of operations of 8 Energy Conservation Centers established in three regions) to effectively implement the Target Program at localities across the country. - 2010.

- b) Implementing agencies:

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

Group 2:

Enhancing education, publicity, information dissemination, mobilizing the community, raising awareness, promoting energy efficiency and conservation, protecting the environment consisting of 03 Projects: 2. The second project: enhancing public awareness about energy efficiency and conservation among the people.

Building television and radio programs on energy efficiency and conservation content, broadcasted on the Central Television Station and Voice of Vietnam Radio stations every two months on average.

a) Content:

- Incorporating energy-saving content into local television and radio programs at least once every three months. Building an online information portal on energy conservation and six exhibition points for energy-saving technology and equipment in six selected provinces and cities.

- Conducting six training sessions on energy conservation for managers, technical staff, communicators...

- Organize six training courses on energy conservation for managers, technical staff, and propagandists...

- Organize two creative solution and idea contests for energy-saving technology and equipment in 2008 and 2013.

- Publish brochures, stickers, advertisements, and small books on successful local, business, and construction project models of energy-efficient and effective usage.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

The Ministry of Industry shall take the lead; the Ministry of Culture - Information, the Ministry of Justice, the Ministry of Science and Technology, the Vietnam Association for Science and Technology, the Vietnam Women's Union, the Ho Chi Minh Communist Youth Union, and the People's Committees of provinces and centrally-run cities shall coordinate to implement.

3. The third project: Incorporate contents on energy-efficient and effective usage education into the national education system.

a) Content:

- Develop curricula, textbooks, and teaching methods to integrate knowledge on energy-efficient and effective usage into subjects suitable for each educational level from elementary school to secondary school.

- Develop programs and compile textbooks for vocational courses on energy-efficient and effective usage for specialized secondary schools and vocational training institutions.

- Develop programs and compile textbooks to integrate knowledge on energy-efficient and effective usage for various vocational fields in specialized secondary schools and vocational training institutions.

- Develop programs and compile textbooks on energy-efficient and effective usage to be included in subjects for universities and colleges.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

The Ministry of Education and Training shall take the lead; the Ministry of Industry and related ministries and sectors, and the People's Committees of provinces and centrally-run cities shall coordinate to implement.

4. The fourth project: Pilot the campaign to build models of "Energy-saving Usage in Each Household."

a) Content:

- Select six urban and rural points nationwide; at each point, choose 100 willing household participants for the project.

- Train local officials participating in the project about energy-saving measures and the implementation method of the project.

- Evaluate the current energy usage status at selected points and propose energy-saving measures, organize the implementation of the project.

- Provide energy-saving devices to replace high-energy-consuming devices when necessary at subsidized prices; effectively utilize new forms of energy (biogas, biomass...); establish habits of energy-saving usage among participating households.

- Summarize and evaluate the results of the project and propose a promotion and expansion program.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

The Ministry of Industry shall take the lead; the Ministry of Agriculture and Rural Development, the People's Committees at the selected local levels implementing the project, Vietnam Electricity Corporation, the Vietnam Women's Union, the Ho Chi Minh Communist Youth Union shall coordinate to implement.

Group 3: Develop and promote high-efficiency, energy-saving equipment, gradually phasing out low-efficiency equipment, including two projects:

5. The fifth project: Develop standards and labeling certification for energy-saving products for certain selected energy-consuming products.

a) Content:

- Survey the energy consumption situation of energy-consuming devices in society, determine the prevalence and participation rate in the energy consumption structure of each type of device; create a list of high-energy-consuming devices, categorize them according to appropriate efficiency levels based on societal development stages over time.

- Develop and promulgate five minimum energy performance standards for target products (fluorescent lamps; ballasts for fluorescent lamps; electric fans; electric motors; air conditioners; refrigerators) during the period 2006-2010 and five standards for five selected types of equipment during the period 2011-2013.

- Develop a testing network for energy performance and an online information portal for labeling energy-saving products.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

The Ministry of Science and Technology shall take the lead; the Ministry of Industry, the Ministry of Trade, the Ministry of Education and Training, and the Vietnam Association for Science and Technology shall coordinate to implement.

6. The sixth project: Technical support for domestic manufacturers to comply with energy performance standards.

a) Content:

- Organize seminars and dialogues with domestic manufacturers regarding energy-saving equipment; identify necessary requirements for product design and technology to produce higher-efficiency products that meet market demands, closely follow updates in national energy performance standards.

- Organize training sessions to enhance project economic analysis capabilities for selected enterprises (large, medium, and small enterprises), calculate costs and benefits in designing and developing new products, receiving technology transfers from domestic and foreign partners, installation and production line modification costs, and the timeframe to achieve energy performance standards.

- Apply incentives for enterprise collaboration; support and encourage domestic manufacturers to adopt technologies that improve energy efficiency.

- Support enterprises in developing action plans to produce energy-using products that meet energy performance standards.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

The Ministry of Industry shall take the lead; the Ministry of Science and Technology, the Ministry of Trade, the Ministry of Education and Training, and the Vietnam Association for Science and Technology shall coordinate to implement.

Group 4: Energy-efficient and effective usage in industrial production enterprises, including two projects:

7. The seventh project: Establish a model for energy-efficient and effective usage management in enterprises.

a) Content:

- Compile materials on energy management; disseminate experiences from successful domestic and international models of energy-efficient and effective usage.

- Organize training sessions on energy management for leaders of Industrial Departments, enterprises...; support industrial production enterprises in forming systems for energy-efficient and effective usage management in enterprises.

- Establish six model energy management frameworks for six key enterprises in six selected industrial sectors.

- Survey and assess the capacity of energy consulting organizations; build and enhance the capacity of some selected energy service organizations in three regions nationwide to act as focal points for implementing advisory and energy audit activities, and transferring energy-saving technology.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

Ministry of Industry leads; provincial People's Committees under the central government and state-owned corporations coordinate in implementation.

8. The eighth project: support industrial production enterprises in upgrading, improving, and rationalizing production lines to efficiently and economically utilize energy.

a) Content:

- Develop mechanisms, plans, and methods to support industrial production enterprises in upgrading, improving, and rationalizing technical and technological processes for energy utilization.

- Support enterprises in conducting energy audits, surveys, and identifying cases with advantages in potential and opportunities to promote efficient and economical energy use; develop and implement investment projects for upgrading, improving, and rationalizing energy-utilizing technologies.

- Construct and implement specific and suitable fuel, heat, and electricity technologies for different practical subjects, focusing on equipping production lines to utilize excess heat from industrial boiler exhaust gases, combined heat and power technology, energy savings in electric motor usage, air conditioning, ventilation, and processing of agricultural and aquatic products.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

Ministry of Industry leads; relevant ministries, sectors, and the Vietnam Association for Science and Technology cooperate in implementation.

Group 5: Efficient and economical energy use in buildings includes two projects:

9. The ninth project: enhance capacity and implement activities for efficient and economical energy use in building design, construction, and management.

a) Content:

- Organize training sessions and disseminate information about the Vietnamese Construction Technical Regulations "Energy-efficient Buildings," raising awareness among participants in construction activities within Vietnam regarding energy conservation in construction.

- Conduct training on solutions for efficient and economical energy use in construction projects, including aspects related to consultation, supervision, evaluation, and licensing procedures for local Construction Departments' staff.

- Print and disseminate brochures on efficient and economical energy use as communication materials, promoting them to units and workers in the construction industry.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

Ministry of Construction leads; relevant ministries, sectors, and provincial People's Committees under the central government coordinate in implementation.

10. The tenth project: establish and operationalize a structured management system for efficient and economical energy use in buildings.

a) Content:

- Establish five model energy management frameworks and operationalize these models for five selected buildings.

- Enhance the capacity of some selected energy service organizations in three regions nationwide to act as focal points for implementing advisory and energy audit activities, and transferring energy-saving technology in the construction sector.

- Pilot renovations of some high-rise buildings, supporting new constructions to apply energy-saving solutions.

- Develop and launch a campaign to implement "Green Buildings" that save energy at agencies and enterprises nationwide.

- Annually organize evaluations and award national certificates for green buildings meeting requirements and assessment criteria. Coordinate award activities for energy-saving buildings in ASEAN.

- Organize design competitions and ideas for energy-saving building models and eco-village architecture. Select designs for appropriate application and provide support measures for pilot implementation.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

Ministry of Construction leads; relevant ministries, sectors, and provincial People's Committees under the central government coordinate in implementation.

Group 6: Efficient and economical energy use in transportation activities includes one project:

11. The eleventh project: optimize the capacity of transportation equipment, reduce fuel consumption, and minimize environmental emissions.

a) Content:

- Develop specific energy-saving programs and plans through optimizing road, waterway, railway, air, and sea transport networks; rationalizing transportation equipment; developing high-capacity transport modes for large-scale passenger and cargo transport.

- Apply energy-saving solutions for transportation equipment through technical management, new science and technology applications; establish and adjust reasonable economic and technical standards during the production, maintenance, and repair of transportation equipment.

- Test the use of biofuels as alternative fuels for some transportation equipment.

Ministry of Industry leading; Ministry of Justice, Ministry of Construction, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Vietnam Association for Science and Technology Cooperation participating in implementation.

Ministry of Transport leads; relevant ministries, sectors, and provincial People's Committees under the central government coordinate in implementation.

III. Implementation Period:

Chapter I of the National Target Program on Rational and Efficient Energy Use shall be implemented from 2006 to 2015, divided into two phases:

- Phase I (2006 - 2010): the phase for actively implementing all contents of the Program.

- Phase II (2011 - 2015): the phase for deeply and widely implementing the contents of the Program based on summarizing, evaluating, and drawing lessons from the results achieved during Phase I.

Article 2. Main solutions for implementing the National Target Program on Rational and Efficient Energy Use.

I. Financial Solutions:

1. State budget funds: allocated for the development and improvement of management mechanisms for rational and efficient energy use, enhancing capacity, conducting surveys, audits, organizing implementation of projects, and partially supporting project implementation through preferential loans similar to science and technology development projects.

2. Funding from organizations and individuals both within and outside the country.

3. Funding from enterprises participating in the program:

- Investing in energy-saving projects proposed by enterprises during their participation in the Program's projects.

- Repaying loans to implement projects listed in the Program's catalog.

- Contributing to the organization and implementation of projects at enterprises.

II. Investment Solutions in Science and Technology and Training:

- Selectively investing to enhance the capacity of consulting, designing, testing, and auditing organizations.

- Investing in training and improving the capacity of managers, particularly for localities and key energy-consuming enterprises regarding rational and efficient energy use.

- Investing in communication, information dissemination, education, and raising public awareness about energy conservation.

- The Steering Committee of the Program will cooperate with Ministries to propose certain research topics on developing new energy-saving products, and building policies on rational and efficient energy use through annual science and technology funding.

III. International Cooperation Solutions:

- Strengthening international cooperation in training, enhancing the capacity of staff working in the field of rational and efficient energy use and consulting organizations through direct investment, scientific conferences, sending staff abroad for training, dispatching survey teams overseas, and advising on the construction of standard-compliant testing laboratories.

- Cooperating in the development of policies, regulations, and standards related to the field of rational and efficient energy use.

- Coordinating with ASEAN and international testing networks to test energy-saving products.

- Cooperating with the ASEAN Energy Cooperation Network in awarding ASEAN awards for energy-efficient buildings and eco-villages.

Article 3. Implementing the National Target Program on Rational and Efficient Energy Use.

I. The Steering Committee of the Program

1. Establishing the National Steering Committee for the National Target Program on Rational and Efficient Energy Use, chaired by the Minister of Industry, with representatives from the Ministries of Construction, Transport, Finance, Education and Training, Culture and Information, Science and Technology, Planning and Investment, Finance, Justice, and the Vietnam Association for Science and Technology as members.

2. The Office of the Steering Committee of the Program shall be located at the Ministry of Industry.

II. Assignment of Responsibilities

1. The Ministry of Industry: as the permanent body of the Program's Steering Committee, coordinating with other Ministries, sectors, and relevant organizations to implement the Program; coordinating all activities of the Program and implementing assigned projects.

2. Participating Ministries, sectors, and mass organizations shall develop detailed plans for each specific project to be submitted to the Program's Steering Committee for approval and inclusion in the annual implementation plan.

3. Ministry of Finance:

- Collaborating with the Ministry of Industry to establish reasonable energy pricing mechanisms aimed at promoting rational and efficient energy use.

- Balancing finances for Program contents and including them in the annual plan.

- Monitoring, inspecting, and participating in evaluating the outcomes of Program projects.

4. The Ministry of Planning and Investment:

- Balancing the budget, incorporating it into the annual implementation plan, and ensuring necessary resources for Program activities.

- Calling for investment and sponsorship from international projects on rational and efficient energy use.

5. Provincial People's Committees under the central government:

- Developing policies for managing rational and efficient energy use at the local level.

- Collaborating to implement Program projects at the local level.

III. Management, Supervision, and Evaluation

1. The Steering Committee of the National Target Program on Rational and Efficient Energy Use is responsible for coordinating and supervising all Program activities to achieve the goals of each project and is accountable for overall results.

2. The main bodies of each project are responsible for coordinating and supervising project activities and are accountable for the results of the projects they lead.

Article 4. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 5. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.