China

Country Information

Important Dates

MRP first draft submission: 
Oct, 2012
Allocation of Implementation Funding: 
Mar, 2013

Key Documents & Presentations

Market-based Approach

Fact

Source:http://www.news.com.au    In April 2015, China's pilot ETS program reached a value of $122 million.

The PMR will provide support to China to develop its nation-wide emissions trading system. This will include assistance with cap setting, allocation, MRV design and set up, as well as design of a supporting legal framework. In addition, the Chinese ETS will include mechanisms for price containment and market oversight. Specific analytical work will be carried out on the inclusion of state-owned enterprises and the power sector. The national ETS is expected to launch in phases between 2016 and 2020.

National Context

China’s annual GHG emissions in 2008 was estimated as 7,031 million tonnes, while per capita CO2 emissions from fossil fuel combustion in China were 5.13 tons in 2009, equivalent to 52% of the average level in OECD countries.

China’s climate change strategy is integrated into its social and economic development planning. Action on climate change mitigation will be an important catalyst for the restructuring of key aspects of the Chinese economy, including the power sector. China pledges to reduce its carbon dioxide emissions per unit of GDP by 40–45% by 2020, compared with 2005 levels, , and decrease by 17% by 2015. China aims to increase non-fossil-based primary energy consumption to 15% by 2020.

China has built its administrative and working mechanisms to address climate change issues under the National Development and Reform Commission (NDRC), with division of responsibilities among relevant ministries based on sectors and provincial bodies. Policies have been designed based on China’s National Climate Change Program and the 12th Five Year Plan. The 2009 Resolution of the Standing Committee of the National People’s Congress to develop responses to climate change requires the alignment of climate change related laws with the government’s working plan.

Emissions Trading

In order to achieve its emissions reduction target, the Chinese government is piloting emissions trading in seven regions in ChinaThese pilots cover 5 cities and 2 provinces, accounting for 18% of China’s population and 28% of its national GDP. All seven pilots were launched between 2013 and 2014. They include: Beijing, Tianjin, Shanghai, Chongqing, Hubei, Guangdong, and Shenzhen.

A nation-wide ETS is expected to be launched in a phased-approach between 2015 and 2020. Offset credirs will be allowed within China's ETS.

Offset and/or Other Emission Reduction Crediting Programs

Since 2005, China has developed a large number of CDM projects, and the country ranks the highest in terms of the number of registered projects and estimated average annual reductions.

  • 2,708 CDM projects (52.1% of the world’s total) registered after CDM Executive Board’s approval (as of end of November, 2012)
  • 460million tons of CO2 equivalent (65% of the world’s total) estimated as average annual reductions of Chinese CDM projects.

Other Activities to Support the Development of Market-based Mechanisms

A voluntary emission trading market has been initiated since 2008. In 2009, “Panda standard” (a voluntary carbon standard) was issued. In June 2012, the NDRC released the Interim Regulation and the guidelines to effectively implement national-level framework of voluntary market trading.

Focal Point

  • The Ministry of Finance is the national focal point to the World Bank and for the financial management of resources from the PMR.
  • The National Development and Reform Commission (NDRC) is the implementing agency of the project responsible for the project oversight, preparation of the work plans and report, coordination with relevant organizations and filing of project documents. News from the NDRC is available here.

News

 

 

All Documents & Presentations

Country Work
Document Language Date
China: Update on National ETS Developments English March 2015
China's Carbon Emissions Trading Pilots - An Initial Review English March 2015
Carbon Finance Innovation in China's Emissions Trading Pilots English March 2015
China: Update on ETS English November 2014
China: Update on ETS pilots English May 2014
China: Status of MRP Implementation English March 2014
China: Recent Development of Chinese ETS English March 2014
China: International Review of Trading Schemes for Energy Savings and Carbon Emission Reductions English November 2013
White Certificate Trading, Green Certificate Trading, Emissions Trading: Which One to Choose? English September 2013
International Review of Trading Schemes for Energy Saving, Carbon Reduction and Renewable Energy English July 2013
China: Shanghai Emissions Trading Scheme English June 2013
China: Final Market Readiness Proposal (MRP) Presentation English March 2013
China: Design of Domestic Emissions Trading Scheme English March 2013
China: Final Market Readiness Proposal (MRP) English February 2013
China: Update Carbon Market Developments English May 2012
China: Organizing Framework English May 2011
China: Expression of Interest Letter English January 2011
China: Expression of Interest (EoI) English January 2011
Policy Work
Document Language Date
China: Upstream Analytical Work to Support Mid- and Long-term Mitigation Objectives English June 2015
Policy Mapping Workshop: China's ETS - Policies and Challenges English March 2013
Technical Work
Document Language Date
MRV Practice In China English June 2015
China: Status and Challenges to Monitoring National GHG Emissions English September 2014
China: Status and Challenges Monitoring Facility-Level Emissions English September 2014
China: Interaction Between GHG Transaction Registries in Market Mechanisms English September 2014
China: QA/QC Operations at the Facility-Level English September 2014
PMR Technical Note 8: A Survey of the MRV Systems for China’s ETS Pilots English July 2014
Energy Efficientcy Measurement and Verification Issues and Options English July 2013
Modeling & Reporting Workshop: Installation Level Emissions Data Collection in China English October 2012
ETS Workshop: Low Carbon Development in Shenzhen, China English March 2012
ETS Workshop: Allocation in Emissions Trading - China English March 2012
ETS Workshop: Why Emissions Trading - China English March 2012
China: Data Management System and Lessons Learned English
Resolutions
Document Language Date
Resolution PA5/2013-3: Allocation of the Implementation Phase Funding to China English March 2013
Other Materials
Document Language Date
China Carbon Market Monitor May 2015 English May 2015
China: Domestic Offset Scheme English March 2014

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