Audit Investigation on Energy Conservation and Pollution Reduction

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Audit Investigation on Energy Conservation and
Pollution Reduction

• Qu Jing
• National audit office of China

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In Response to Climate Change

• Energy conservation and pollution reduction is an
  important policy

Shut down some polluting factories to reduce the
pollution
install new equipment to save the energy
exhaust emission
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An audit investigation

• fulfillment of energy conservation and pollution
  reduction
• in 20 provinces
• cover 2007 to 2009
• key industries like power, steel and cement

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I. Objectives, Scope, Contents and Criteria of
Auditing

• 1. Objectives
• investigate the fulfillment of local
  governments targets
• reveal the outstanding issues
• analyse the causes of such issues
• offer specific comments and suggestions to
  promote the work

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2. Scope and Contents

• Scope governments authorities enterprises.
• Contents implementation of policies and
  regulationsthe input, management and use of
  funds , and so on.

Check out the condition of dismantling equipment
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3. Criteria

• Energy Conservation Law
• Circular Economy Promotion Law
• National Climate Change Program
• the General Principle of Energy Audit on
  Enterprises

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II. Main Audit Investigation Findings

• 1. The elimination of outdated productivity
  in some enterprises was not thorough.

• 8 enterprises--over-reported the closed-down
  capacity of 492,500 kilowatts
• 121 enterprises--over-reported closed-down
  capacity of 23million tons of iron, 20 million
  tons of steel
• 54 enterprises--failure to eliminate cement
  production

the auditor watching the on-line
monitoring data in an enterprise
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2. Some enterprises built new high-energy-consumin
g projects in violation of regulations.

• 42 enterprises--44 thermal power projects
• 97 enterprises--143 iron and steel projects
• 47 enterprises--47 cement projects

Exhaust emission from one power factory
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3. Some special funds for energy conservation
and pollution reduction were misused.

• misappropriated 57 million yuan of special funds
  ( 9 million)
• 14 enterprises--deceive 86 million yuan ( 13
  million)
• 15 enterprises--over-received 62 million yuan(
  9.8 million)

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?. Audit Suggestions

• 1. strictly implement the relevant policies
• take stern actions against illegal action
• punish the responsible persons according
  to law

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?. Audit Suggestions

• 2. To further strengthen and improve the
  examination and supervision
• Standardize the implementation criteria for
  policies.

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?. Audit Suggestions

• 3. To further study and optimize the policies
  and regulations
• increase policy support for new energy and core
  technology

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?. Follow-up and Rectification

• 1. eliminated outdated instruments
• 8 thermal power enterprises
• 105 iron and steel enterprises
• 39 cement enterprises

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?. Follow-up and Rectification

• 2. a special verification work on irregular iron
  and steel projects punished 10 persons
  responsible enterprises made the corrections.

numbers of enterprises irregular construction measures
39 thermal power projects submitted approval procedures
72 iron and steel production eliminating equivalent capacity
40 cement production stopped construction
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?. Follow-up and Rectification

• 3. return the 57 million yuan misappropriated to
  the original channels (9 million)
• fined 6.62 million yuan ( 1 million)

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Thank You!