Germany and China are protagonists and role models for a successful urbanisation process offering significant scope for transformation and innovation. As many cities and local governments take steps to become low-carbon and climate-resilient, they face common challenges to address sustainability and climate goals.
In June 2025, a delegation of German energy experts from North Rhine-Westphalia, Baden-Württemberg, the Wuppertal Institute for Climate, Environment and Energy, and the German Federal Ministry for Economic Affairs and Energy (BMWE) visited the Chinese provinces of Jiangsu and Sichuan. The study tour included a combination of energy transition-related site visits in both provinces, roundtable discussions with Chinese experts, and the project kick-off event which was inaugurated by the National Development and Reform Commission. The exchange allowed experts from the German states and Chinese provinces to gain a deeper understanding of each other’s energy transition developments and challenges, laying a solid foundation for future project implementation.
China has released a new national plan outlining its strategy to phase down ozone-depleting substances and potent greenhouse gases between 2025 and 2030. Jointly issued by several key government bodies, the plan describes China’s approach to fulfil its obligations under the Montreal Protocol and the Kigali Amendment. It includes targeted reduction schedules for controlled substances such as HCFCs and HFCs, establishes a quota-based management system, and outlines efforts to protect the ozone layer, mitigate climate change, and promote green, low-carbon development across industries, particularly the fluorochemical sector.
As China advances on its path toward carbon neutrality, the provinces of Sichuan and Anhui are taking concrete steps to decarbonise the cement sector, one of the country’s highest-emitting industries. A recent Sino-German workshop in Chengdu facilitated technical exchanges, policy dialogue, and the forging of partnerships. Provincial research institutes from both provinces presented their interim findings on cement decarbonization pathways, which will inform tailored policy recommendations for the provincial governments. Discussions focused on aligning provincial strategies with national and international climate goals, drawing on both European and Chinese best practices.
How can cities decarbonise freight transport while keeping deliveries efficient? As part of the CDFT project, the project team visited Suzhou in May 2025 to explore potential solutions. In meetings with the Suzhou Transport Bureau, local logistics companies, and the tech firm Zelos, discussions focused on green freight policies, unmanned delivery systems, and integrating clean vehicle fleets. The team also visited Taicang Port to observe intermodal freight operations. A key outcome: selecting a 240 km freight corridor for a case study to pilot zero-emission trucks and advance low-carbon logistics across the Yangtze River Delta.
China’s national Emissions Trading System (ETS), officially established in 2021 as the world’s largest carbon market, plays a crucial role in tackling climate change. It currently covers the power, steel, cement, and aluminum smelter sectors . Since 2012, Germany has been a key partner in this journey, supporting the design of regional and national schemes, and training over 5,000 Chinese officials and industry experts.
In June, a delegation of the Climate Investment and Finance Association (CIFA) visited Europe to exchange on climate- and sustainable finance. The trip included workshops and meetings with key institutions like the Deutsche Bundesbank and the European Commission. Topics covered climate risk management, sustainable information disclosure, and transition finance.
China has released its “2025 Progress Report on Product Carbon Footprint (PCF) Management”, outlining the role of PCF for its national decarbonisation strategy. The report details a growing framework spanning standards, databases, certification, and disclosure. It states that over 100 PCF standards have been issued, pilots are underway in 25 provinces, and a national GHG emission factor database is live. Financial institutions, industry, and digital platforms are increasingly aligning with PCF tools to green supply chains and improve climate transparency. As global carbon rules tighten, China is positioning PCF not just for domestic reform but also as a lever for international climate competitiveness.
The Ministry of Ecology and Environment of China has released the “2024 China Progress Report on Climate Change Adaptation”, providing an overview of the measures taken to strengthen resilience in the face of growing climate risks. According to the report, China has taken steps in enhancing climate monitoring and early warning, improving natural ecosystems, building socio-economic resilience, and deepening international cooperation. It states the country’s intention to integrate climate adaptation into its national governance and to contribute to global climate solutions.
China’s recent policy updates lay the foundation for ancillary services and spot markets developments. This marks another step in the ongoing power market reform. The new rules aim to address challenges arising from higher shares of variable renewables by introducing more standardised, market-based mechanisms to enhance system flexibility and efficiency.
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