With China’s pledge of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060, the country is demonstrating an increased determination to a profound low-carbon transformation of its economy and society. The Sino-German Cooperation on Climate Change is supported by the German Federal Government through the International Climate Initiative (IKI) being implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
To facilitate the Sino-German policy dialogue on climate change and to accelerate climate action in these two countries, the Sino-German Cooperation on Climate Change provides a knowledge-sharing platform for technical exchange among stakeholders. It was established to facilitate the sharing of lessons learned and to raise climate ambition among stakeholders in their decarbonisation pathways.
Our work focuses on the following areas:
To support local climate mitigation efforts in Inner Mongolia, the Sino-German Cooperation on Climate Change – NDC Implementation project has been working closely with the Department of Ecology and Environment of the Inner Mongolia Autonomous Region and the Inner Mongolia Autonomous Region Ecology and Environment Low-Carbon Development Center.
On 5 November 2025, the Sino-German Cooperation on Climate Change – Climate Partnership (KP4) project co-hosted a workshop on climate stress testing together with the UK–China (Guangdong) CCUS Center. The workshop brought together representatives from the Ministry of Ecology and Environment (MEE), the National Financial Regulatory Administration (NFRA), the Foreign Economic Cooperation Office (FECO), the Financial Union, the China Banking Association and financial institutions.
On 17 November 2025, experts from the German-Chinese Track 2 Dialogue presented their joint publication on nature-based solutions for climate protection and biodiversity conservation at a side event in the German Pavilion at the 30th World Climate Conference (COP30) in Belém, Brazil. Led by Prof. Dr Wolfgang Cramer and Prof. Dr Binbin Wang, the experts called for rapid and holistic action, emphasising the integrated implementation of the Rio Conventions to harness synergies between climate mitigation, adaptation, and biodiversity conservation.
As part of the “NextGen Climate Dialogues” series, the Sino-German Cooperation on Climate Change – Climate Partnership project has recently organised three dialogues at Beijing University of Technology, Peking University, and Tsinghua University, providing students with a platform to engage in open discussions with experts and leaders in the climate field.
To deepen mutual understanding of current climate policy directions and identify opportunities for enhanced Sino-German cooperation, GIZ and the National Center for Climate Change Strategy and International Cooperation (NCSC) convened a Climate Policy Expert Exchange. Held on 15 October 2025, the dialogue brought together GIZ, NCSC, international think tanks NewClimate Institute and Climate Analytics, and renowned Chinese climate policy experts. Discussions focused on emerging themes for future collaboration, including industry decarbonisation, non-CO₂ mitigation, and a just transition.
On 23 September, IKI Energy project Director Markus Wypior participated in the sub-forum “Green Development Mechanism Promoting the Low-Carbon Transition of the Energy and Power Sector”. The sub-forum, organized by the China Electricity Council (CEC), was part of the China Carbon Market Conference 2025 with over 100 participants. Wypior presented how market mechanisms support Germany’s energy transition and their implications at both national and state levels. He highlighted the energy transition on the national level and the implementation in the German states of Baden-Württemberg (BW) and North Rhine-Westphalia (NRW), as well as their cooperation with Jiangsu and Sichuan under the IKI Energy project.
On 17 November 2025, the Ministry of Ecology and Environment (MEE) released the “Allocation Plan for the National Carbon Emissions Trading Scheme (ETS) for the Steel, Cement, and Aluminium Smelting Industries for 2024-2025”. This marks the first inclusion of these high-emission sectors into China’s national ETS. The plan is developed in accordance with the Interim Regulations on Carbon Emissions Trading and relevant sectoral implementation documents, aiming to standardise compliance and improve market mechanisms.
At the climate summit held on the sidelines of the UN General Assembly on 24 September, President Xi Jinping presented China’s updated Nationally Determined Contribution (NDC), which were subsequently submitted to the United Framework Convention on Climate Change (UNFCCC) on 3 November.
On 25 August 2025, China has issued new policy guidance entitled “Opinions on Advancing Green and Low-Carbon Transition and Strengthening the National Carbon Market”. The document outlines how the country intends to expand the scope and improve the governance of its mandatory national Emissions Trading System (ETS) and voluntary carbon market (VCM), with the goal of building a more effective and internationally credible carbon pricing framework. A central feature is the gradual shift from intensity-based controls to absolute emissions caps in major industrial sectors.
On August 25, 2025, the Ministry of Ecology and Environment (MEE), the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology (MIIT) jointly released the “Action Plan for Nitrous Oxide Emission Control in the Industrial Sector”. The plan aims to align China’s industrial policy with its long-term climate goals. It emphasises the green and low-carbon transformation of industry, while also positioning nitrous oxide (N₂O) management as a priority in the country’s strategy for tackling climate change. N₂O (commonly known as “laughing gas”), is a greenhouse gas nearly 300 times more potent than CO₂ and is often released during industrial processes.
On 27 June 2025, the People’s Bank of China (PBoC), the National Financial Regulatory Administration (NFRA), and the China Securities Regulatory Commission (CSRC) jointly issued the “Green Finance Endorsed Project Catalogue” (2025 edition).
On 15 August 2025, the Central Committee of the CPC and the State Council issued the “Opinions on Promoting High-Quality Urban Development”. The top-level policy outlines a phase of urban development focused on improving existing urban areas and increasing efficiency, rather than large-scale expansion. It sets goals for 2030 and 2035 and applies to all city sizes and townships. Key areas include urban infrastructure, resource efficiency, industrial and digital integration, governance, and environmental considerations. The guideline also highlights the development of urban clusters and city groups to support coordinated regional planning.
China’s power market is on its way to achieve greater unity with two new regulations recently released. On 1 October 2025, the NDRC and NEA officially implemented the “Basic Rules for Power Market Measurement and Settlement”. They provide standardised metering, verification, and settlement procedures for power providers, trading centres, aggregators (VPPs), energy storage operators, and grid companies. Meanwhile, the “Plan for Regularised Power Transactions Across Grid Operating Areas” dismantles barriers between the State Grid and China Southern Power Grid, eliminating administrative interference and further advancing nationwide market-based electricity trading.
On 10 September 2025, Minister of Ecology and Environment Huang Runqiu, on behalf of the State Council, delivered a report to the Standing Committee of the 14th National People’s Congress on China’s efforts to address climate change and advance its carbon peaking and carbon neutrality (“dual carbon”) goals. The report highlighted progress since the targets were announced in 2020, while also acknowledging ongoing challenges in aligning economic development with emissions reduction.
China’s National Development and Reform Commission (NDRC), together with three ministries, has issued the Notice on Promoting the Scientific Planning and Construction of High-Power Charging Facilities. The policy sets a target of over 100,000 high-power charging units nationwide by 2027 and introduces clear requirements for open access, technology innovation, and safety standards. This marks a major step toward supporting the rapid electrification of commercial vehicles and advancing the country’s low-carbon transition.
