Sino-German Cooperation on Emissions Trading Systems, Carbon Market Mechanisms, and Non-CO2 GHG Mitigation

China has set itself the targets of peaking CO2 emissions before 2030 and achieving carbon neutrality by 2060. To meet these targets in a cost-efficient manner, China is gradually shifting its climate policies towards market-based approaches. The most prominent example is the national emissions trading system (ETS) that has become operational in 2021. The project is primarily aimed at political decision-makers at the national level and their supporting organisations. The project supports them in the areas of strengthening the national ETS and developing effective measures to control and reduce non-CO2 GHG emissions through technical exchange and international best practice.

Project data

Countries
China
IKI funding
4,000,000.00 €
Duration
10/2024 till 09/2028
Status
open
Implementing organisation
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner
  • Ministry of Ecology and Environment - China
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State of implementation/results

  • The project conducted a successful online kick-off workshop on April 9, 2025 with key stakeholders, including the Federal Ministry for Economic Affairs and Energy (BMWE) and the Ministry of Ecology and Environment (MEE).
  • In October 2025, the project organized a training for 25 officials from the Chinese Ministry of Ecology and Environment (MEE), other ministries, think tanks, and subnational governments in Germany on the EU ETS and European climate change policies. The delegation gained in-depth knowledge of the latest EU ETS policies and exchanged views with representatives from BMUKN and EU DG CLIMA on the progress of China's carbon market.
  • In November 2025, the project facilitated a study tour to Berlin and Brussels for experts from the MEE and research institutions to examine regulations and practices related to Continuous Emissions Monitoring Systems (CEMS). Through intensive discussions with government agencies, think tanks, and equipment manufacturers, the delegation gained a clear understanding of the current application and future prospects of CEMS under the EU ETS.
  • The project has completed a research report titled "Study on Integrating Gender Perspectives into Carbon Market Development." It brought together gender experts from organizations including UN Women, United Nations Development Programm (UNDP), the Asian Development Bank (ADB), and the China National Center for Climate Change Strategy and International Cooperation (NCSC) for discussions. The experts recognized this study as groundbreaking within the context of China's national carbon market. They agreed that it provides reasonable recommendations for Chinese carbon market policymakers and offers new perspectives for stakeholders involved in the carbon market
  • Several in-depth interviews were carried out with stakeholders from China’s carbon market system specifically to inform the gender analysis. These interviews provide the basis for the comprehensive report “Mainstreaming Gender in China’s Carbon Market,” which is currently being finalized and will include concrete recommendations for integrating gender considerations into Emissions Trading System (ETS) governance.

Latest Update:
04/2026

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