Launch of the 2018 China Carbon Pricing Survey

July 10, 2018 – During an event at the Dutch embassy in Beijing, the 2018 version of the Carbon Pricing Survey was published. The Survey provides information about expectations of key stakeholders with regard to carbon pricing in China. GIZ supported the Carbon Pricing Survey, which was jointly conducted by China Carbon Forum (CCF), ICF and SinoCarbon and received inputs from the Dutch Emissions Authority, the Tsinghua University Center for China Carbon Market Research, and the Norwegian Environment Agency. Further donors were The Embassy of the Federal Republic of Germany, The Royal Norwegian Embassy, The Embassy of the Kingdom of Netherlands and the Energy Foundation China.

GIZ supported the Carbon Pricing Survey, which was jointly conducted by China Carbon Forum (CCF), ICF and SinoCarbon and received inputs from the Dutch Emissions Authority, the Tsinghua University Center for China Carbon Market Research, and the Norwegian Environment Agency. Further donors were The Embassy of the Federal Republic of Germany, The Royal Norwegian Embassy, The Embassy of the Kingdom of Netherlands and the Energy Foundation China.

With the official launch of national ETS in China, it is urgent and necessary for policymakers to understand the expectation and concerns of the market participants. The 2018 China Carbon Pricing Survey addresses this need and offers insights into the level of preparedness, opinions and expectations of carbon market participants. This is especially relevant since transparency and clear expectations are an important foundation for active trading and a well-functioning carbon market. The 2018 version of the survey is furthermore the first market survey undertaken after the December 2017 official launch of the ‘Development Plan’ for a national ETS in China, and comes at a time of global interest in China’s climate action, given the negotiations on rules for implementation of the Paris Agreement, as well as the new Ministry of Ecology and Environment taking charge of climate change mitigation efforts.

For the survey, 317 stakeholders were asked a range of different questions related to the Chinese ETS. Among the central findings is that a majority of respondents assumes that the ETS will already affect their investment decisions before 2020, that 72% of respondents expect China’s national ETS to be fully functional by 2025 and that in general rising carbon prices are expected. Furthermore, more than 80% assume that China will peak its CO2 emissions before 2030. With regard to the industry and its preparedness, two thirds of power sector respondents expect that sector to be ready for trading in 2020 and over half of respondents expect the cement sector (another key emitter) to be ready to join the national ETS by the end of 2020.

In preparation of the survey, two roundtable discussions with policy makers and key industry stakeholders were held to gain their opinions into key ETS design and inform the layout of the survey.

The 2018 Carbon Pricing Survey and protocols of the roundtable discussions can be downloaded here:

2018 China Carbon Pricing Survey (EN Version) 

2018 China Carbon Pricing Survey (CN Version)

Protocol Roundtable on Key GHG Emitters Preparing to Join the ETS (EN)

Protocol Roundtable on Key GHG Emitters Preparing to Join the ETS (CN)

Protocol Roundtable on MRV in the Cement and Aluminium Sectors (EN)

Protocol Roundtable on MRV in the Cement and Aluminium Sectors (CN)