Sino-German Cooperation
on Biodiversity, Climate and Environment
On behalf of International Climate Initiative (IKI)

Workshop Summary: Infrastructure of Emissions Trading Scheme on Provincial Level (Hangzhou & Nanjing)

On 8 August 2016, the GIZ project “Capacity Building for the Establishment of Emissions Trading Schemes (ETS) in China” and the Zhejiang Center for Climate Change and Low-carbon Development Cooperation jointly held a workshop for the ETS constructions on provincial level in Hangzhou. On 9 August 2016, a similar workshop was held in collaboration with the Jiangsu Development and Reform Commission (JDRC) in Nanjing.

The workshops brought together contributing experts and members of the JDRC, the German Emissions Trading Authority (DEHSt), Jiangsu Information Center, ETS office of Jiangsu Province, Zhejiang Development and Reform Commission (ZDRC), Zhejiang Center for Climate Change and Low-carbon Development Cooperation, China Quality Certification Center (CQC), the Shanghai Information Center (SHIC), etc.

mmexport1470915019742 Ms. Wang Keli, GHG Auditor, China Quality Certification Center

An introduction to the MRV system for the upcoming national ETS in China was presented by Ms. Wang Keli, GHG Auditor from China Quality Certification Center (CQC). Ms. Wang first described the preliminary stage in the seven pilot regions (Beijing, Shanghai, Tianjin, Shenzhen, Chongqing, Guangdong, and Hubei) and stated that the progress has not been consistent in all regions in terms of monitoring, auditing, and data collection. She then addressed the preparatory stage for the national kick-off of ETS in 2017, while stressing the lack of time and consistency, which might be improved by the establishment of a competent authority such as the DEHSt.

Ms. Liu Jia, Deputy Director of the SHIC, gave a succinct overview of cap setting and allowances allocation of the Shanghai pilot ETS. Since 2013, Shanghai has adopted a market-based approach to allocate emission allowances and has included 191 enterprises from ten industrial areas and six non-industrial areas. Additionally, Ms. Liu mentioned about the discrepancy between city-, provincial and national levels.

sdr Infrastructure of ETS on provincial level in Hangzhou

Representative of the Zhejiang Center for Climate Change and Low-carbon Development Cooperation, Ms. Wang Cheng, spoke about the preparation of Zhejiang province within the national ETS of China. She described Zhejiang’s low-carbon development, its MRV system, and the progress of its ETS.

mmexport1470916322432 Infrastructure of ETS on provincial level in Nanjing

An overview of cap setting and allowances allocation and an introduction to the preparation of Jiangsu Province on ETS were presented by Mr. Huang Yefei, Researcher of low-carbon development Nanjing Branch of CQC and Member of ETS office of Jiangsu province. Furthermore, Mr. Huang described some difficulties and problems encountered throughout the process in Jiangsu.

Mr. Lai Li, Representative of the Jiangsu Information Center, provided an outline of the MRV system in Jiangsu province. Another representative later demonstrated how to use the online system to report GHG emissions. The system aims at establishing a modern online database in which all managers, competent authorities, and other stakeholders can be integrated efficiently.

mmexport1470916307589 Mr. Alexander Handke, Manager at the DEHSt

Mr. Alexander Handke, Manager at the DEHSt, presented to the Chinese authorities and stakeholders on the monitoring and reporting system of the EU and German ETS. He also provided with a detailed presentation on the development of verification and accreditation systems, as well as lessons learnt from the EU and German ETS.

mmexport1470916312275 Dr. Hans-Joachim Ziesing, Senior Expert of EU-ETS

Dr. Hans-Joachim Ziesing, Senior Expert of the EU ETS and Member of the independent German Expert Commission introduced the experience and lessons learnt on cap setting and allowances allocation of the EU and German ETS. Dr. Ziesing stressed that political consideration “will always play an important role” and that “ambitious caps are key.”

One participant from the local DRC commented that “the experience and lessons learnt from the EU ETS were most valuable” and that “the topics are very helpful for the future work of the ‘his’ province”. The workshops offered a platform for sharing relevant experience from the EU ETS and provided useful suggestions for the preparation of China’s upcoming national ETS on local level, which is scheduled for 2017.

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CAO Yun

Advisor
Sino-German Cooperation on Climate Change (SGCCC)
yun.cao@giz.de
Ms. Cao facilitates policy exchange between German and Chinese governments and coordinates work streams on south-south-north cooperation, climate legislation and finance to support China in strengthening its climate governance system. Besides, she supports the development of new projects. She studied at Humboldt University of Berlin, Free University of Berlin and Technical University of Munich, having extensive research experiences on climate and energy policies in China and Germany. Before joining GIZ, she worked at the German Institute for Economic Research (DIW Berlin) for many years.