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Asset Procurement

  
  
  

Asset Procurement Must Be Based on Intelligence in the New World

Maybe the Western world should take a leaf out of the book of the Chinese regulators, who seem to be taking very proactive steps to ensure that that country achieves its projected energy efficiency and emissions reduction projections.

The Chinese stole the limelight at the Copenhagen Summit when they were the first to come forward with comprehensive greenhouse gas initiatives. They now appear to be taking steps to ensure that they "get there."

The Chinese government has just announced that any new, fixed asset procurement initiatives must first pass stringent, energy-saving assessments. As such, all new investments must be first assessed by independent institutions, before being rubberstamped by government regulators. Each asset will be viewed on its merits based on its energy consumption and ultimate efficiency.

Maybe the Western world should take a leaf out of the book of the Chinese regulators, who seem to be taking very proactive steps to ensure that that country achieves its projected energy efficiency and emissions reduction projections. The Chinese stole the limelight at the Copenhagen Summit when they were the first to come forward with comprehensive greenhouse gas initiatives. They now appear to be taking steps to ensure that they "get there."

The new laws, nationwide, come into effect on November 1 of 2010. Not only will asset procurement be initially regulated in this way, but each piece of equipment will be subsequently monitored and supervised to ensure that it does, in fact, achieve the energy consumption actually claimed. The regulations further stipulate that the more energy that an individual asset uses, the more detailed an energy-saving report must be compiled.

China is still maintaining a breakneck expansion of its industrial core. Regulators understand that asset procurement is an integral part of this expansion and, as they fully intend to meet their energy and emissions goals, they are initiating these far-reaching asset procurement restrictions.

Regulations Governing Asset Procurement in Western Economies

As energy consumption per unit of gross domestic product was far short of its annual targets in 2009, the new Chinese rules are a way of accelerating efficiencies in order for the government to meet their lofty goals. In a statement, the Chinese National Development and Reform Commission said that "it is very important and urgent for us to curb excessive growth of energy consumption and create energy use efficiency."

Of course it is far from likely that such regulations governing asset procurement will be introduced in Western economies, but individual organizations should nevertheless approach the issue from the same perspective. All items of equipment should be assessed using energy efficiency as a prime metric. This will help to ensure that the raw cost of energy is constrained as much as possible and that greenhouse gas emissions are reduced.

Asset Procurement in a Different Light

When individual assets are measured to determine their energy efficiency, ultimate performance can be revealed. If energy use levels fluctuate from the baseline, or norm, potential problems can be anticipated and preventative maintenance engaged. This can only help to improve uptime and productivity as well.

If the new rules initiated by the Chinese government are effective, that country's competitive stance will likely be elevated. This, in itself, should also help to motivate other organizations around the world to help ensure that their energy use is constrained as much as possible. All asset procurement will now be seen in a completely different light.

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