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 project supports knowledge and experience exchange between Chinese, European and German experts and key stakeholders related to emissions trading. 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.
China has published new greenhouse gas (GHG) reduction commitments in preparation for the 2015 Paris climate negotiations. The country will reach its peak emissions level by 2030. It also intends to reduce its emissions per unit of GDP by 60 to 65 per cent during the same period. China had already committed itself to a 40 to 45 per cent reduction in emissions intensity by 2020. An emissions trading scheme (ETS) is being introduced on a gradual basis in order to achieve these targets.
This makes China the first emerging economy to launch a trading scheme to limit GHG emissions. A pilot phase for this complex market instrument has been running since 2013 in Beijing, Shanghai, Tianjin, Chongqing and Shenzhen, as well as in Guangdong and Hubei Provinces. The project provides advice and training to further support the nationwide roll out of the ETS, which is scheduled for 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 an effective emissions trading scheme in China.