Thoughts On Fostering Innovation Of Legal Systems Of EPC

Chapter Ⅰ introduces the overview of Energy Performance Contracting (EPC). Firstly, theauthor introduces the concept of EPC, and then, the four characteristics of EPC: highefficiency of energy saving, zero investment for the customers, and guarantee of energysaving and the improvement of enterprise’s image. After that, author discusses the types ofenergy saving contracts: benefit sharing, energy-saving guarantee and energy expensesentrusting contracts. Finally, the theoretical basis for EPC is elaborated. As the externaldiseconomy caused by the carbon based energy production and consumption is an importantleading factor for environment pollution and climate change, EPC is a good choice for oursociety as this mechanism can help us internalize the energy and environment costs, andrealize the effective utilization of energy and achieve the goal of sustainable development.Chapter Ⅱ examines carefully the status quo of EPC in China. In the eyes of the author,many obstacles need to be cleared: the unsmooth channel for financing, the high taxation,imperfect credit system, absence of an authoritative impartial certification, and the systematicobstacle of governmental procurement.Chapter Ⅲ discusses the existing laws and policies on EPC. In China, state lawsprovide some principles for EPC and administrative regulations and other policies give animportant support on finance and taxation. After that, an examination on the problems of lawsand policies is conducted: lack of concrete standardized industry administrative regulations,and scarce types of EPC. These obstacles, if not cleared timely, would hamper thedevelopment of EPC.Chapter Ⅳ introduces the successful practices on EPC in the US, Japan, Canada, SouthKorea. These successful practices would be noticed as important referential experiences forChina. In China, a relatively perfect administrative regulatory system should be established onEPC. Moreover, the financial environment should be improved, and the scale of governmentalprocurement should be enlarged. To internalize the environment costs, a specialenvironmental tax should be collected. The guild can play a more active role in EPC practice.For the public, the environmental consciousness should be developed.In Chapter Ⅴ, the author puts forward some ideas on fostering the innovation of legalsystem on EPC in China. The following concrete advice is offered: the perfection of regulation on EPC industry, establishment of an impartial certification agencies, creation ofspecial fund for EPC, and perfection of government procurement.