At a conference on September 27, following the climate announcement of President Xi Jinping at the UN General Assembly, Mr. Li Gao, Director General of the Department of Climate Change of the MEE, Professor He Jiankun, former Vice President of Tsinghua University and Mr. Xu Huaqing, Director of the National Center for Climate Change Strategy and International Cooperation (NCSC), gave insights into China’s policies to actively address the challenge of climate change.

Regarding the construction of the national ETS, Li pointed out that the power generation industry was well prepared for participating in the national carbon market. A number of intensive trainings have been conducted for local authorities, as well as power companies. Preparations for the necessary regulations and supporting systems are well advanced. The plans for the settlement and trading systems have been confirmed and will enter the construction stage soon. After confirming the participating installations, finalizing the system’s infrastructure and a test period, the actual trading phase will begin.

Li further explained that during the 14th Five-Year Plan period, the construction of the national ETS will be accelerated. He specifically mentioned the inclusion of other key industries, including steel, cement, chemicals, electrolytic aluminum, and paper making. In recent years much work has already been carried out to prepare these sectors for the inclusion in the national ETS, such as basic data collection, research on allocation, and capacity building for industry personnel. The event was mainly attended by Chinese journalists.

Earlier in September, Li spoke at the conference “2020 Beijing International Forum for Metropolitan Clean Air and Climate Actions”. In his speech, he confirmed that the national ETS is supposed to start this year.

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Sino-German Project on Capacity Building for the Establishment of ETS in China

Project country
China
Political Partners
German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU); Ministry of Ecology and Environment of the People's Republic of China (MEE)
Implementation Partners
National Center for Climate Change Strategy and International Cooperation of the People's Republic of China (NCSC)
Duration
07/2012 - 03/2020

The Chinese government has set itself the goal of reaching the peak of CO2 emissions by around 2030 and reducing CO2 emissions per unit of GDP by 60 to 65% compared to 2005 levels. To achieve these targets, China is gradually establishing a national Emission Trading System (ETS) as one of the key building blocks of its mitigation strategy. Since the start of the project in 2012, the Sino-German project “Capacity Building for the Establishment of Emissions Trading Schemes (ETS) in China” has been supporting the Chinese government in this endeavour through knowledge transfer and strengthening of the political leverage of key institutions and stakeholders required to develop and operate an ETS. Initially, the project supported the development of the regional pilots ETS. Since 2016, the focus lies on support for the roll out of the national ETS. The project is jointly implemented by GIZ and the Ministry of Ecology and Environment (MEE) of the People’s Republic of China. It is executed on behalf of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) within the framework of the International Climate Initiative (IKI) that is financing climate and biodiversity projects in developing and newly industrialising countries, as well as in countries in transition.