Project: Sino-German Cooperation on ETS, Carbon Market Mechanisms, and Non-CO₂ Greenhouse Gas Mitigation

On 23 September 2025, experts and policymakers from China and Germany came together in Shanghai to exchange insights on enhancing the carbon market data quality of the iron and steel industry. Co-hosted by GIZ and the National Center for Climate Change Strategy and International Cooperation (NCSC), the workshop took place at a crucial moment, as China has included the steel sector in its national carbon market earlier this year. This development presents an important step toward achieving its carbon peaking and neutrality goals, and a valuable opportunity for deeper Sino-German collaboration in the climate field. By bringing together Chinese, German, and EU perspectives, participants explored pathways for enhanced technical cooperation and mutual learning.

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.