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

Zhengzhou – Cradle of Chinese civilisation and venue of the 5th advanced training on ETS

November 26, 2018 – Together with the Chinese National Center for Climate Change Strategy and International Cooperation (NCSC) GIZ held its fifth advanced training on the 14th and 15th of November in Zhengzhou in order to support the implementation of China’s work plan on the construction of the national ETS for the power generation sector. As part of the training, the contribution of Chinese and German experts as well as discussion rounds and a trading simulation allowed 30 participating representatives from state-owned power groups, officials from the local Development and Reform Commissions (DRC) and Departments of Ecology and Environment (DEE) and their supporting agencies from provinces of Henan, Shandong, Anhui and the city of Shanghai to expand their expertise in ETS through inputs from the experts as well as a fruitful exchange among participants themselves. Thematically, the training covered MRV, allocation and carbon asset management.

The training started with opening remarks by Mr. ZHI Anyu, Deputy Director of the Henan DRC and GIZ Project Director Mr. Kristian Wilkening. They stressed the significance of such trainings for government officials and businesses to successfully implement and participate in the national ETS. The first presentation was provided by Ms. LI Yan from NCSC about challenges and opportunities of the construction of the national carbon market with a focus on the power sector. The next point of the agenda were presentations by the Chinese expert Mr. ZHU Hailei from China Quality Certification Center (CQC) and the German expert Mr. Stephan Maier from the Deutsche Emissionshandelsstelle (DEHSt). They shared practices and experiences with MRV in China and Europe. Participants were especially interested in the European experience with online monitoring for power plants and the role of verifiers. Afterwards, Prof. DUAN Maosheng from Tsinghua University provided a theoretical input about the several allocation methods and their different application in the pilots and the national ETS. The last session of the day by Mr. ZHANG Hong from Datang Carbon Asset Management addressed the question how the power generation sector can participate in ETS.

The first part of the training with a focus on input by experts was complemented by the second part of the training on day two with a focus on exchange among the participants. In the first discussion round, Mr. MA Aimin, Deputy Director of NCSC, Mr. Wang Tao from Henan DRC and representatives from Shanghai Environment and Energy Exchange as well as from Huadian Corporation talked about the design and management of carbon trading. The participants then split up in smaller groups where they discussed the necessary capacity building for competent authorities, challenges with regard to the quality data reporting, requirements of the power sector to be part of ETS and market incentives for operators to take part in carbon trade. Their results were subsequently presented by representatives from each group. In the final session of the training, participants took part in an ETS trading simulation, which was run by Hubei Emission Exchange. Here participants could familiarise themselves with pricing mechanisms and approaches to involve companies in ETS in a practical manner.

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