Support for Verification Pilots to Strengthen the MRV System of the China’s National ETS

Oct 23, 2020

To support the construction of the Monitoring, Reporting and Verification (MRV) system of the national ETS in China, the project commissioned the China Quality Certification Center (CQC) to support local officials from environmental law enforcement teams at the Bureaus of Ecology and Environment (BEE) in four pilot regions to verify the emissions data of key emission units from the power sector. The four pilot regions are Shanghai, Qinghai Province, Jingdezhen in Jiangxi province, and Shijiazhuang in Hebei province. The work was carried out from August to October 2020. The aim of the verification pilots is to assess which role local BEE officials from the environmental law enforcement teams can play in the verification process and potentially integrate it with other environmental reporting requirements. To this end, CQC will check and evaluate the verification reports prepared by the local BEE environmental law enforcement teams and draw up recommendations about the feasibility of the approach. CQC will further identify knowledge gaps and propose measures to strengthen the local BEE’s capacities. The final report will be made available to the MEE to inform the decision-making process on the design of the MRV system of China’s national ETS.

Photo Credit: GIZ

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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

China has set itself the goal of peaking of CO2 emissions before 2030 and achieving carbon neutrality by 2060. The national emissions trading system (ETS) is expected to play a central role in achieving this goal and is part of China’s Nationally Determined Contribution (NDC) to the Paris Agreement. Since 2013, China has operated ETS pilots at a regional level in five cities and three provinces. The development of the national ETS was officially launched in 2017. Has entered first compliance phase, will regulate CO2 emissions from around 2,200 companies in the power generation sector. To effectively contribute to China's climate goals, the national ETS is to be further developed and expanded to other industrial sectors in the coming years. As laid out in the 14th Five-Year Plan and the 2035 long-term outline, China is committed to strengthen the control of non-CO2 greenhouse gases (GHG). Non-CO2 GHG mitigation has considerable reduction potential and can be realized at low cost. Industry-related N2O mitigation is playing an important role. N2O or nitrous oxide is a particularly potent greenhouse gas and the Chinese government develop suitable measures for a sustainable reduction GIZ on behalf of Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of the Federal Republic of Germany (BMU) has been supporting the development of ETS in China since 2012, the Sino-German project “Capacity Building for the Establishment of Emissions Trading Schemes (ETS) in China” supported the Chinese government through the deepening of the knowledge and strengthening of the political leverage of key institutions and stakeholders required to develop and operate an emission trading scheme during the pilot phase at the local level and during the initial phase at the national level. Since 2020, project name is “Sino-German Cooperation on Emissions Trading Systems, Carbon Market Mechanisms, and Industry related N2O Mitigation”. The Project supports the establishment and further refinement of the Chinese national ETS as well as other carbon market instruments to reduce GHG emissions through technical exchange, advisory and capacity building activities. A particular focus is on the support for enhancing the verification system. The Project shall further strengthen the political and technical dialogue between China and Germany on carbon market topics. It further supports the abatement of industry related N2O emissions through support capacities, studies, workshops and various exchange formats for knowledge and technology. By analyzing good practices of German industry in terms of N2O reduction policies and technical solutions, the Project aims to provide policy recommendations for N2O mitigation in China.