To enhance policy dialogue on carbon markets between China and Europe and to support the development of China’s national Emissions Trading System (ETS), GIZ organized two study tours to Germany and European Union institutions in October and November 2025. Tailored to the interests of policymakers and research institutions, the tours focused on ETS and advanced monitoring technologies.
The first study tour from 13 to 23 October targeted policymakers from the Ministry of Ecology and Environment (MEE) and the State Administration for Market Regulation (SAMR), experts from leading climate and environment think tanks, and provincial officials responsible for daily carbon market management.
At the opening ceremony in Berlin, Dirk Weinreich, Head of the Carbon Market Division at the Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), and Johannes Enzmann from DG CLIMA emphasised the value of mutual learning in carbon market construction.
The meeting provided a comprehensive overview of the European climate policy architecture. Key topics included:
- Global perspectives: Stefano de Clara, Head of the International Carbon Action Partnership (ICAP) Secretariat, analysed global trends, while EU experts discussed linkages between the EU and other international markets.
- EU ETS framework: Several DG CLIMA officials detailed the system’s core mechanisms, including the allocation of free allowances, benchmarking, the use of auctioning as the default allocation method, and the operation of the Union Registry.
- German national practice: BMUKN experts presented Germany’s national emissions trading system (nEHS), the transition toward “ETS 2,” and the implementation of the Social Climate Fund. Discussions also covered the inclusion of the aviation and shipping sectors.
- Compliance and Monitoring, Reporting and Verification (MRV): Experts from the German Emissions Trading Authority (DEHSt) provided an in-depth look at Monitoring, Reporting, and Verification (MRV) protocols, stressing the importance of data quality and regulatory compliance.
Beyond policy discussions, the delegation engaged in practical site visits. They visited the TÜV NORD Group and met with representatives from the power generation company UNIPER to understand verification rules from both the operator and auditor perspectives. A visit to the European Energy Exchange (EEX) offered insights into trading mechanisms and auction systems, while a session at the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) focused on carbon pricing and global support activities under Article 6 of the Paris Agreement.
Following the initial tour, GIZ organized a second delegation from 2 to 9 November, focusing specifically on Continuous Emissions Monitoring Systems (CEMS). This group included experts from the MEE’s Department of Ecological Monitoring and Department of Climate Change, the National Centre for Climate Change Strategy and International Cooperation (NCSC), and the China National Environmental Monitoring Center.
In Berlin, the group visited BMUKN and the consultancy Adelphi to exchange views on CO2 and other environmental pollutant monitoring experiences. They also held in depth technical exchange with TÜV NORD and the equipment manufacturer ENVEA GmbH to explore the technical application of CEMS, the implementation of the EU Industrial Emissions Directive, and air quality policy frameworks.
The delegation then travelled to Brussels, visiting the Institute for European Environmental Policy (IEEP) and DG CLIMA. Discussions centered on the EU’s environmental monitoring framework, MRV systems, and specific CEMS requirements under the EU ETS.
These study tours underscored a consensus among Chinese and European experts: carbon markets are vital tools for achieving emission reduction targets and driving a green industrial transition.
Through these exchanges, the Chinese delegates gained valuable references for the improvement and expansion of China’s domestic carbon market. Both sides expressed optimism that continued cooperation and experience sharing will provide new momentum into global climate governance.
The study tours were organised as part of the Sino-German Cooperation on Emissions Trading Systems, Carbon Market Mechanisms, and Non-CO₂ Greenhouse Gas Mitigation project, a bilateral cooperation project under the International Climate Initiative (IKI) commissioned by the Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) of the Federal Republic of Germany in partnership with the Ministry of Ecology and Environment (MEE) of the People’s Republic of China. It is jointly implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and China’s National Centre for Climate Change Strategy and International Cooperation (NCSC).
