(China Daily)
Updated: 2007-12-13 10:14

With the publication of a new list of energy-saving products for government procurement, the authorities have officially put into practice a policy that makes government procurement of such goods compulsory.

This move will surely help raise the government's own efficiency as a big energy consumer.

Yet, more importantly, massive green orders from governments at all levels will give a huge boost to the national campaign to raise energy efficiency.

The government has planned to cut the country's energy intensity by 20 percent between 2006 and 2010. That is a tough task for a developing country like China which is undergoing fast urbanization and industrialization.

The green procurement practice can serve the energy-saving goal in two ways.

On one hand, large orders from the government will directly improve the bottom line of enterprises that are passionate about energy-saving. It was reported that in 2006, the country's total government procurement was 350 billion yuan ($47 billion) and the figure is expected to top 500 billion yuan this year.

An increasingly bigger government procurement cake will provide considerable economic incentive for enterprises which are able to deliver products more energy-saving than their competitors.

On the other hand, by becoming an energy-saving champion, the government will set a good example for the whole society to go green.

At present, products of higher energy efficiency are usually more expensive than traditional ones. An expensive price tag more than often blinds consumers to the overall advantages of energy-saving products. It is therefore not easy to persuade consumers to accept such products that demand high prices but in the long-term are a saving.

Compulsory government purchases of energy-saving products will show the public the government's resolve on energy conservation. As the government pays an extra sum for green products, its commitment to changing the country's growth pattern into an energy-saving, environment-friendly and sustainable one will be more credible too.

Seeing is believing. If the government can substantially cut its energy bill through massive purchase and use of energy-saving products, Chinese consumers will not wait long before embracing those products.