Sino-German Cooperation
on Biodiversity, Climate and Environment
On behalf of International Climate Initiative (IKI)

Annual Report on First-Year Operation of Shenzhen ETS

March 2015 – On 18th June 2013 Shenzhen officially launched its local Emissions Trading Scheme (ETS), the first among the seven pilots. By mid-2014, the Shenzhen carbon market had operated for one year and had successfully completed its first compliance period. Shenzhen has played a leading role in China’s economic reform and opening up. In the context of further deepening reforms, Shenzhen is actively seeking to take a leading role in the development of an ‘ecological civilization’, and also puts a great deal of emphasis on the establishment of its emissions trading pilot scheme. In this regard Shenzhen incorporates an open and innovative attitude, providing guidance for the development of China’s carbon market. Hereof Shenzhen has won widespread praise.

Together with the Shenzhen DRC and local partners like the Shenzhen Research Center for Urban Development and the Shenzhen China Emissions Exchange, the report was published in March 2015. It provides a summary of the past one-year operational experience of the Shenzhen carbon market and identifies deficiencies and gaps, explores strategies and measures to improve the market. Thus, it offers important analysis and suggestions to enhance the performance of the Shenzhen ETS. The report provides a detailed review of the first year operational experience of the Shenzhen carbon market, and draws conclusions about the Shenzhen ETS performance from distinct perspectives. It covers key components of the Shenzhen ETS, operational performance (including compliance results, enterprise growth, and trading performance), as well as policy recommendations on the improvement of the Shenzhen ETS.

In addition the report provides five case studies of typical regulated companies regarding the stakeholder’s expectations and experiences with the local ETS. Best practices are highlighted to provide a reference for other regulated companies. Furthermore it provides policy options.

The report was reviewed by international experts like Dr. Felix Chr. Matthes from the German Ökoinstitut und Dr. Hans-Joachim Ziesing in order to provide recommendations for further steps.

For further information and to download the entire report please click here.

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CAO Yun

Advisor
Sino-German Cooperation on Climate Change (SGCCC)
yun.cao@giz.de
Ms. Cao facilitates policy exchange between German and Chinese governments and coordinates work streams on south-south-north cooperation, climate legislation and finance to support China in strengthening its climate governance system. Besides, she supports the development of new projects. She studied at Humboldt University of Berlin, Free University of Berlin and Technical University of Munich, having extensive research experiences on climate and energy policies in China and Germany. Before joining GIZ, she worked at the German Institute for Economic Research (DIW Berlin) for many years.