The next several years are critical forachieving lasting results in China's relatively newenergy efficiency program for public institutions. Publicinstitutions in China are defined as those governmentagencies, public service units, and organizations thateither fully or partially receive government budget funds.In the study team's opinion, key challenges forChina's public institution energy conservation programfor the medium-term might best be summarized to include thefollowing four: (i) completing program institutionalinfrastructure, (ii) making further inroads in the huge taskof completing energy use data collection and diagnosticanalysis in China's many public entities, (iii) furtherimproving incentives and generating greater enthusiasm amongpublic entities for action, and (iv) expanding financingoptions for public entities, especially using energyperformance contracting (EPC). Plans already exist toaddress the first two challenges and emphasis should beplaced on quality of implementation. Efforts dealing withthe third and fourth challenges, improving incentives andexpanding use of energy performance contracting, also areparts of China's current agenda. Meeting these twochallenges in particular will require creativity anddevelopment of new approaches. Consultation of internationalexperience in these two areas may be particularly helpful,and this receives special focus in this report.