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:
GIZ is supporting research in Anhui and Hunan provinces aimed at realizing China’s target to peak emissions by 2030 and reach carbon neutrality by 2060 (“dual-carbon goals”) with a series of practical trainings on how to apply the Low Emissions Analysis Platform (LEAP) model as a tool for scenario analysis.
With the next cycle of Nationally Determined Contributions (NDCs) approaching in early 2025, pressure is building up to address non-CO2 emissions, which currently contribute about
From 8 to 15 September 2024, the NDC Implementation project hosted a study tour on climate change adaptation to Germany and the Netherlands for Chinese experts and officials from national and provincial government as well as advisory bodies. The visit provided participants with insights into climate adaptation strategies. Through in-depth discussions with experts from government, think tanks, and academia, the study tour explored key adaptation policies and practices at both the national, provincial and municipal levels.
Methane is a potent greenhouse gas and the second biggest contributor to global warming after carbon dioxide. In recent years, global efforts to control methane emissions have intensified, driven by initiatives like the Global Methane Pledge from COP26, and national strategies from the U.S. and the EU. China has also taken significant steps with its Methane Emissions Control Action Plan, positioning itself alongside international efforts in global methane reduction. The Sino-German Cooperation on Climate Change – NDC Implementation project, implemented by GIZ on behalf of BMWK, plays a critical role in supporting these national efforts by advancing methane reduction strategies in key provinces such as Shandong and Guangd
Two events took place in Beijing in September 2024, supported by the Sino-German Climate Partnership, a project implemented by GIZ on behalf of the German Federal Foreign Office: the first Sino-German Climate Study Camp, organized in collaboration with Technical University of Munich (TUM) and Tsinghua University, as well as the third keynote lecture of the NextGen Climate Dialogue series. These events strengthened contacts and enabled exchange between young climate leaders from China, Germany, and other European nations, equipping them with the knowledge and skills needed to tackle the global climate challenge. They also provided a platform for engagement on climate science, policy, and action to those students who sought a better understanding of the science of climate change and avenues for climate action.
GIZ is cooperating with the Foreign Environmental Cooperation Centre (FECO) as well as the China Automotive Technology Research Center (CARTAC) to study refrigerant life cycle management. In August 2024, the project paid site visits to two companies in Zhejiang province and Guangdong province that are engaged in refrigerant recovery, as direct exchange with refrigerant manufacturers is crucial for establishing a comprehensive life cycle management system. Following the visits, two reports will be published soon, one with recommendations to Chinese decision-makers on improving refrigerant management practices, and one focusing on the potential for refrigerant recovery in automotive repair.
The Ministry of Natural Resources (MNR) of China has released the “Implementation Opinions on Solidly Promoting the Construction of a Beautiful China through the Protection and Sustainable Utilisation of Natural Resources” on 5 August 2024, proposing 28 measures for the improvement of the national spatial development pattern and the conservation of natural resources. The policy emphasises that protecting natural resources is an inherent requirement for “building a Beautiful China” (strategic concept of the Chinese government emphasising effective ecological protection, sustainable resource use, and harmonious coexistence with nature). Main points mentioned are the improvement of the national spatial planning system, the establishment of a system of natural protected area with national parks, and the strengthening of energy and resource management.
The Action Plan for High-Quality Distribution Grid Development (2024–2027) issued by China’s National Energy Administration (NEA) complements the broader strategy outlined in the Action Plan for Accelerating the New Type Power System (2024–2027). This plan specifically focuses on upgrading China’s distribution grid to meet the challenges posed by the energy transition and the nation’s carbon neutrality goals. It aims to ensure the grid’s capacity to handle the increasing demand from emerging market participants such as distributed renewable energy sources and electric vehicles (EVs).
In September 2024, China has issued several key policy documents to expand and gradually refine both its compliance carbon market and its voluntary emissions reduction mechanisms.
The Work Plan for Expanding the National Carbon Emissions Trading Market to Include the Cement, Steel, and Electrolytic Aluminium Industries released by the Chinese Ministry of Ecology and Environment (MEE) at the beginning of September 2024 has garnered widespread attention. The draft that has been put up for public consultation proposes the inclusion of high-emission sectors such as cement, iron and steel, as well as electrolytic aluminium into the national carbon trading system (referred to as national ETS), starting already in 2024. This move will greatly expand the market’s coverage to around 8 Gts of CO2, which make up 60% of China’s total emissions, according to the MEE.
In August 2024, the National Development and Reform Commission (NDRC), National Energy Administration (NEA), and National Data Administration (NDA) jointly released the “Action Plan for Accelerating the New Type Power System (2024–2027)”. This action plan is designed to advance China’s energy transition and align it with national goals to achieve carbon peaking and neutrality (“dual carbon” targets). It addresses pressing challenges in power system transformation, such as grid modernisation, renewable energy integration, and energy security.
On August 11, 2024, the State Council published the “Opinion on Accelerating the Comprehensive Green Transition in Social and Economic Development”. This is the first time for the Chinese government to provide a systematic roadmap for the green transition, aiming to accelerate China’s shift towards a green economy.
On June 18th, 2024, the European Commission and the Ministry of Ecology and Environment (MEE) of the People’s Republic of China signed the Memorandum of Understanding to Enhance cooperation on Emissions Trading (hereinafter referred to as “the MOU”) in Brussels to replace the previous one which was signed on July 18th, 2018. Building on the EU-China Climate Change Partnership and bilateral projects, the cooperation will continue for a period of five years.
On August 2, the State Council released a “Work Plan for Accelerating the Establishment of a Dual-Control System for Carbon Emissions.” Historically, China has focused on managing both the total energy consumption and energy intensity since the 1980s—a strategy known as “dual control of energy.” However, with the growing need to combat climate change and utilize the comparative advantage of clean energy, the Chinese government announced in 2021 that it would gradually transform from a system of “dual control of energy” to a system of “dual control of carbon emission”. In July 2023, the Central Committee for Comprehensively Deepening Reform officially endorsed the shift from energy dual control to carbon emission dual control.
On 14 May 2024, the NDRC published the Basic Rules for Power Market Operation. This marks the first revision of these rules in 19 years. The new market operation rules are a comprehensive package divided into eleven chapters and 45 articles, and define significant changes compared to the 2005 version. The new electricity market operation rules came into effect on 1 July 2024 and aim to improve various aspects of market design and operation.
To make a first assessment on the implementation of the National Strategy for Adaptation to Climate Change 2035, China’s Ministry of Ecology and the Environment (MEE) issued a progress report on China’s climate change adaptation on June 2, which systematically summarizes the achievements of China’s adaptation to climate change since 2022.
