Workshop Summary: Verification Guidelines in the Civil Aviation Sector for China’s National ETS (Beijing)

5 August 2016 – The GIZ and the Shanghai Information Center (SHIC) hosted the final workshop on “Verification in the Civil Aviation Sector for the National ETS” in Beijing. Aviation is amongst the eight sectors to be included within China’s national carbon market. As a fast-growing industry and considerable contributor of global greenhouse gas emissions, how it is involved in the national Emissions Trading Schemes (ETS) is critical to the overall impact of GHG emissions trading. The aviation sector requires management and accounting practices that differ greatly from other industries as, for example, the source of emissions is unstationary. Presently Shanghai is the only domestic pilot to incorporate the aviation sector, therefore, the experiences gained in Shanghai offer insight into how an ETS which encompasses the Chinese aviation sector can be implemented effectively.

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The last in a series of three workshops to emerge from the cooperation between the GIZ and the SHIC was held to present the final outcomes and draft verification guidelines. The workshop summarized the experience and practice of the EU and Shanghai in aviation emissions verification and presented suggestions and reference for the establishment of a national carbon market in China. The workshop brought together contributing experts and members from the Civil Aviation Administration of China (CAAC), the China Association for Science and Technology (CAST), the China Quality Certification Center (CQC), the National Development and Reform Commission (NDRC), the German Emissions Trading Authority (DEHSt), and the SHIC.

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Ms. Liu Jia, Deputy Director of Low Carbon Center, Shanghai Information Center

Currently the administrative focus is on the development of verification guidelines as a basis for the national ETS. In order to provide some helpful policy recommendations and to strengthen the capacities of key institutions and actors in the national ETS, the GIZ and the SHIC have undertaken a joint research project which examined the impact of guidelines used during the first pilot phase in Shanghai and explored additional methods that have been employed in the aviation sector in the EU-ETS. The findings on specific verification guidelines for the civil aviation sector were introduced by Ms. Liu Jia, Deputy Director of Low Carbon Center (SHIC). In addition to presenting the project background and research progress, she also offered valuable insights on the Monitoring, Reporting, and Verification (MRV) system for Shanghai’s aviation industry, which may support further development of the national ETS.

Mr. Liu Feng, Deputy Director in the Division of Domestic Policy and Compliance under the Department of Climate Change at the NDRC, presented current progress in the national carbon market building in China and the aviation sector’s participation in the national ETS.

Dr. Olaf Hölzer-Schopohl, Head of the Aviation Unit at the German Emissions Trading Authority (DEHSt) speaking on the experiences from the EU ETS
Dr. Olaf Hölzer-Schopohl, Head of the Aviation Unit at the German Emissions Trading Authority (DEHSt) speaking on the experiences from the EU ETS

The experience from the EU ETS was presented by Dr. Olaf Hölzer-Schopohl and Mr. Alexander Handke, Head of the Aviation Unit and Manager at the DEHSt within the German Environment Agency. Dr. Hölzer-Schopohl provided an overview of the institutional set-up within the DEHSt, as well as the implementation of the developed rules. Whereas Mr. Handke outlined a detailed presentation on the development of verification rules and lessons learnt from the EU ETS.

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Presenters stressed the importance of consistency, transparency, and efficient time management when addressing challenges in measurement, reporting, verification and accounting. One participant commented that “the experience and lessons learnt from the EU ETS were of great value”, which he will share with his colleagues at the local DRC. The comparisons and pointers will be of use to verifiers, airlines and government agencies alike.