About the Project
The Sino-German project is jointly implemented by GIZ and the National Development Reform Commission (NDRC) on behalf of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB). The aim of the project is to strengthen the capacity of China’s key institutions and stakeholders for establishing emissions trading systems (ETS) on regional and national levels. The introduction of this market-based approach in China is seen as a major contribution to the achievement of the government’s ambitious emissions reduction targets.
In 2009, China committed to lower its carbon dioxide emissions per unit of GDP by 40 to 45 per cent by 2020 compared to the 2005 level. The country has elevated its targets to reduce emissions per unit of GDP by 60 to 65 per cent by 2030 relative to the 2005 level, with a strong intention to peak emissions before that. In 2011, the Chinese government announced to gradually establish a national carbon market as one instrument to tackle rising emissions.
This makes China the first emerging economy to launch a trading system to limit greenhouse gas (GHG) emissions. Seven pilot ETS started in five cities (Beijing, Shanghai, Tianjin, Chongqing and Shenzhen) and two provinces (Guangdong and Hubei) in 2013 and 2014. Fujian Province was the last to establish a carbon market in 2016. The establishment of the national ETS is scheduled for the end of 2017.
The project supports Chinese decision makers and key stakeholders on the national and local level to develop sufficient capacities for the establishment and implementation of effective emissions trading systems in China.