Supporting the new emissions trading system in China through training of local actors

Smog in Chongqing, China

Climate action and the transformation to a low-carbon economy have become key objectives of the Chinese government. China has therefore set itself ambitious targets to reduce emissions intensity by 40 to 45 percent by 2020 as compared to 2005. Within this framework, the 13th Five-Year Plan (2016-2020) was adopted, which among other things includes measures to achieve the targets and the introduction of an emissions trading system (ETS). The national ETS was thus launched in December 2017. This also includes an EHS development plan, which provides for three implementation phases. An integral component of the first phase is capacity building measures for Chinese ETS actors.

This is precisely where the project started. In order to support China in building an efficient ETS at the national level, adelphi provided capacity building for stakeholders in China. Due to its extensive experience with emissions trading systems, adelphi was responsible for the organisation and implementation of an ETS training course in the Chinese city of Haikou. Partners included the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, SinoCarbon, the Hainan Development and Reform Commission (DRC) and Hainan Normal University. 

The one-week course gave participants a deeper understanding of ETS design and implementation. They received technical input on topics such as emission ceilings, the impact of ETS to achieving national determined contributions (NDCs), price drivers, and market liquidity. In addition, adelphi conducted specially developed simulation exercises on EHS implementation. This allowed the knowledge gained to be applied immediately. The dynamics of ETS negotiation processes could thus be directly experienced.