DCC of MEE Requests Industrial Sectors to Prepare for Inclusion in National ETS

Since May 2021, the Department of Climate Change (DCC) has consecutively requested the China Building Materials Federation (CBMF), the China Iron and Steel Association (CISA), the China Nonferrous Metals Industry Association (CNMIA) as well as the China Petroleum and Chemical Industry Federation (CPCIF) to support the preparatory work ahead of the sectors’ intended integration into the national ETS. The associations in question represent companies that produce cement, glass, iron, steel, nonferrous metals, petrochemicals, and chemicals. The trade associations will be carrying out work related to (1) allocation and benchmark calculation, (2) test operation of the supporting systems, (3) MRV, (4) serve as a link between companies and government, and (5) capacity-building.

A special emphasis was put on the producers of cement and electrolytic aluminum, as they are particularly well-positioned to be integrated soon. In fact, Prof. ZHANG Xiliang of Tsinghua University stated that this should ideally be achieved before the end of the year.

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Sino-German Cooperation on Emissions Trading Systems, Carbon Market Mechanisms, and Industry-related N2O Mitigation

Project country
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)
07/2012 - 09/2022

The project has been supporting the development of ETS in China since 2012. Since the launch of the Chinese national ETS, the project provides support to further refine the ETS and strengthen the political and technical dialogue between China and Germany on carbon market topics. Since 2020, the project also supports the abatement of industry related N2O emissions through capacity building, studies, workshops, and various exchange formats.