The project “Capacity Building for the establishment of emissions trading schemes (ETS) in China” is a Sino-German cooperation project jointly implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the National Development and Reform Commission (NDRC) of the People’s Republic of China. The project is executed within the framework of the International Climate Initiative (IKI) by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).
The project aims at strengthening the capacity of key stakeholders involved in ETS design and implementation at the national and local level. It provides policy options regarding the preparation and establishment of ETS to China’s key institutions and involved stakeholders. The project seeks to enhance the dialogue between political decision-makers and the private sector and sets out to involve all stakeholders, especially local stock exchanges, financial service providers, as well as verification and trading companies and industry.
The project provides technical advice and supports the strengthening of capacities for the development, establishment and implementation of ETS in China. The exchange of experiences and know-how between Chinese, German and European institutions is supported through advisory sequences and training measures such as study tours, workshops and job shadowing.
- On the local level, the project addresses the pilot regions and assists local institutions in charge of ETS implementation in testing of and making adjustments to the ETS after its establishment. Companies covered by emissions trading as well as further participants in the trading (such as financial service providers, verifiers) are also included.
- On a national level, the Domestic Policy and Compliance Division of the Department of Climate Change of NDRC is supported. In addition, demand-driven support in assessment and evaluation of the experiences made within the pilot schemes is provided, especially regarding legislative-institutional questions.
Results and Perspectives
The project is currently focusing on the pilot regions, but is also supporting national level ETS development. Among others, the project provided technical advice on the design of carbon registries and the establishment of trading platforms in the regions. Study tours to Germany and Europe, as well as experts visits to China, helped to establish an expert exchange and deepen the knowledge of institutions and procedures in the European ETS. In order to involve all relevant stakeholders, including the private sector, the project also provides trainings for companies subject to ETS in the form of an intensive dialogue between European and Chinese industry representatives focused on sharing knowledge and experiences to prepare Chinese companies for the challenges of emissions trading.
The project strives to support Chinese stakeholders to draw on the lessons learnt in Europe and to establish a carbon market which suits China’s circumstances.