On 14 September 2026, GIZ and the National Center for Climate Strategy and International Cooperation jointly organized a workshop on carbon market regulation in the iron and steel industry in Wuhan, China. The workshop brought together Chinese and German technical experts as well as representatives from Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) and the Ministry of Ecology and Environment of the People’s Republic of China (MEE) to exchange experience on regulatory frameworks, emissions monitoring, reporting and verification (MRV), and approaches to strengthening emissions data quality in the iron and steel industry.
Effective regulatory oversight and reliable emissions data are essential for the sound functioning of China’s national emissions trading system (ETS). With the system expanding to cover the steel, cement and aluminium smelting industries in 2025, strengthening data quality management and compliance oversight has become increasingly important. Against this background, the workshop aimed to facilitate mutual learning between China and Germany, drawing on their respective regulatory practices to address key challenges in iron and steel sector emissions monitoring and improve the effectiveness of carbon market oversight, while taking into account their different institutional and industrial contexts.
Exchange on regulatory frameworks and emissions data
Discussions focused on the regulatory frameworks and MRV systems in both countries, as well as methods for identifying and addressing anomalous emissions data. Participants exchanged practical experience on data quality controls, the management of measuring instruments, analytical methods and models for detecting irregularities, accounting for by-product gases, and handling compliance-related risks and specific cases. German experts from the German Emissions Trading Authority (DEHSt) shared experience from the EU ETS, including MRV and compliance oversight. The exchange highlighted the importance of robust data validation, effective verification and targeted regulatory follow-up in ensuring the integrity of emissions data and strengthening the credibility of carbon markets.
Continued Sino-German cooperation in the iron and steel sector
Supported by the International Climate Initiative (IKI) under the project Sino-German Cooperation on Emissions Trading System, Carbon Market Mechanisms, and Mitigation of Non-CO₂ Greenhouse Gas Emissions, the workshop built on ongoing Sino-German cooperation on carbon market governance and iron and steel sector emissions data quality. By bringing together regulatory authorities and technical experts, the exchange provided an opportunity to identify practical approaches to common challenges and explore further cooperation, including more regular exchanges between the two countries. The insights gained will support ongoing efforts to strengthen emissions data management and regulatory practices in China’s iron and steel sector, contributing to the project’s broader objective of advancing Sino-German cooperation on emissions trading, carbon market mechanisms and climate change mitigation.
