Key Documents & Presentations
|China: PMR Project Implementation Status Report 2018||English||April 2018|
|China Carbon Market Monitor: Q2 2017||English||September 2017|
|Resolution PA16/2017-3: Allocation of Additional Implementation Phase Funding to China||English||March 2017|
|China: PMR Project Implementation Status Report 2017||English||March 2017|
|China: Proposal for Additional Funding Allocation Presentation||English||March 2017|
|China: Additional Funding Proposal||English||February 2017|
|China: Case Study||English||December 2016|
|China: Final Market Readiness Proposal (MRP) Presentation||English||March 2013|
|China: Final Market Readiness Proposal (MRP)||English||February 2013|
In April 2015, China's pilot ETS program reached a value of $122 million.
The PMR will provide support to China to develop a nation-wide emissions trading (ETS) system. The target launch date is between 2018 and 2020. Specifically, PMR suport wil be used to develop the following core ETS components:
- Determine scope of the system;
- Set a cap on emissions;
- Establish a system for allocating allowances;
- Develop an MRV system and a transaction registry;
- Establish compliance rules;
- Develop a price containment mechanism;
- Establish an offset mechanism and rules for linking;
- Develop a legal framework;
- Identify participants and trading products; and
- Define a system for market oversight.
To support the development of the national ETS, two studies are planned:
1. Role of State-owned Enterprises (SOE) in the National ETS: Recognizing the influence of China's SOEs on economic growth and their significant contribution to carbon emissions (reining in emissions from SOEs is critical to achieving the national mitigation target), China aims to include SOEs in the national ETS. This study will explore the unique characteristics of SOEs relative to other modern enterprises, identify challenges to inclusion of SOEs in the 7 pilot ETS, and propose steps for inclusion of SOEs in the national ETS. Specifically, the study will report on the following:
- Characteristics of and incentives for SOEs;
- Coverage and scope for SOEs;
- Allowance allocation for SOEs; and
- MRV System for Effective Involvement of SOEs in China ETS.
2. Participation of the Power Sector in the National ETS: Like China's SOEs, the power sector is also an important contributor to carbon emissions. This study will identify a pathway toward inclusion of the sector in the national ETS, including determining the following:
- Cap setting;
- MRV; and
- Coordination of pricing and dispatching mechanism.
China’s climate change strategy is integrated into its social and economic development planning, a point underscored in the June 2015 publication of its Intended Nationally Determined Contribution (INDC) to the UNFCC.
"Looking into the future, China has defined as its strategic goals to complete the construction of a moderately prosperous society in an all-round way by 2020 and to create a prosperous, strong, democratic, culturally developed and harmonious modern socialist country by the middle of this century. It has identified transforming the economic development pattern, constructing ecological civilization and holding to a green, low-carbon and recycled development path as its policy orientation." (INDC of China, pg. 2. Unofficial English translation)
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’s annual GHG emissions in 2008 were 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 has pledged to reduce its CO2 emissions per unit of GDP by 40–45% by 2020, compared with 2005 levels and has also pledged to increase non-fossil-based primary energy consumption to 15% by 2020.
The National Development and Reform Commission (NDRC) is responsible for climate change policy design and implementation, 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.
China has adopted emissions trading as one tool to achieve its mitigation target. The Chinese government is piloting emissions trading in five provinces and two cities, 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.
|Pilot||Launch Date||Coverage Threshold||# Entities Covered||Reporting Threshold|
|Beijing||November 2013||10,000 tCO2||~490||2,000 tce|
|Tianjin||December 2013||20,000 tCO2||114||--|
Industrial: 20,000 tCO2
|Chongqing||June 2014||20,000 tCO2||242||--|
|Hubei||April 2014||60,000 tce
|Guangdon||December 2013||20,000t CO2||202||10,000 tCO2 o
|Shenzhen||June 2013||5,000t CO2||635||3,000 tCO2|
A nation-wide ETS is expected to be launched in a phased-approach between 2018 and 2020. Offset credits will be allowed within China's ETS.
Offset 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.
In 2012, the NDRC issued the Interim Measures for the Management of Voluntary GHG Emission Reduction Transactions. These measures include guidelines for the issuance of domestically-produced offsets known as China Certified Emission Reduction (CCER). CCERs are accepted by all seven ETS pilots in China as offset credits, and are the only type of offset credits accepted by the ETS pilots. The NDRC is the national authority governing offsets and handles all applications for offsets submitted by enterprises supervised by the central government. Other enterprises submit applications to the provincial DRC.
Voluntary Carbon Market
A voluntary emission trading market has been active since 2008. In 2009, “Panda Standard” (a voluntary carbon standard) was issued. China’ s voluntary emission reduction scheme is largely based on the CDM framework. Key differences, designed to reduce transaction costs, include the following:
- No standing support structure;
- No request for review procedures;
- Requirements for validators/verifiers; and
- Free of charge to project owners.
- 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.
All Documents & Presentations
|China Carbon Market Monitor: Q1 2017||English||May 2017|
|China: Approaches and Tools to Setting Mitigation Scenarios||English||October 2014|
|Policy Mapping Workshop: China's ETS - Policies and Challenges||English||March 2013|
|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: Allocation in Emissions Trading - China||English||March 2012|
|ETS Workshop: Why Emissions Trading - China||English||March 2012|
|ETS Workshop: Low Carbon Development in Shenzhen, China||English||March 2012|
|China: Data Management System and Lessons Learned||English|
|Resolution PA5/2013-3: Allocation of the Implementation Phase Funding to China||English||March 2013|
|China Carbon Market Monitor Q3 2017||English||January 2018|
|China Carbon Market Monitor: Q3 2016||English||January 2017|
|China Carbon Market Monitor: Q3 2016 Chinese||English||January 2017|
|China Carbon Market Monitor: Q4 2016||English||January 2017|
|China Carbon Market Monitor: Q2 2016 (Chinese)||English||September 2016|
|China Carbon Market Monitor: Q2 2016||English||June 2016|
|China Carbon Market Monitor: Q1 2016 (Chinese)||Chinese||June 2016|
|China Carbon Market Monitor: Q1 2016||English||May 2016|
|China Carbon Market Monitor #3||English||February 2016|
|China Carbon Market Monitor #3||Chinese||February 2016|
|China Carbon Market Monitor May 2015||English||May 2015|
|China: Domestic Offset Scheme||English||March 2014|
|China's national ETS and PMR||English||June 2019|
|2019 China PMR Project Implementation Status Report||English||May 2019|
|Information Sharing - China's National ETS||English||June 2018|
|China Carbon Market Monitor 2 - October 2015||English||October 2015|
|China Carbon Market Monitor 2 - October 2015 (Chinese Version)||Chinese||October 2015|