As China prepares for the launch of its national emission trading system, the European Commission's Directorates for Climate Action and for International Cooperation and Development and the Climate Change Department of the NDRC are hosting a conference on Thursday 20^th October  on “EU-China Cooperation on Emission Trading in China: Achievements and Lessons”.  This conference marks the end of the first cooperation project between EU and China to build capacity for China's national Emissions Trading System (ETS).  It will bring together high-level representatives and experts from China and the EU as well as representatives from China's seven existing emissions trading pilots, industry and other provinces to discuss experiences to date for the next phase of EU-China cooperation on ETS and for the success of emissions trading in China.  

Emissions trading is a key policy tool to deliver greenhouse gas emissions reduction targets from large emitters, flexibly and at least cost through a market based approach.  By putting a price on carbon by creating a carbon market, it plays an essential role in the transition to a low carbon economy. China is preparing for the launch of its national emissions trading system in 2017. The EU Emissions trading system is now in its 11th year of operation and China has acquired considerable experience from its seven pilot systems across gathered recent years. 

The current EU-China ETS Project (Supporting the Design and Implementation of Emissions Trading Systems in China) started in January 2014 and is due to end in January 2017 and has been working together with all 32 Chinese provinces, municipalities and autonomous regions to support the development of the individual and institutional capacity needed for a successful national ETS from 2017 and into the future.  Over its duration the project will have held around 35 separate activities involving 2000 participants, including senior officials from central and local government departments, senior managers from industry, industrial associations, emissions trading related organizations, third-party verification agencies and law firms. It has allowed Chinese experts and stakeholders to draw on lessons and experience from the EU ETS and from Chinese pilots, allowing China to move ahead to build am ETS designed for its own circumstances, drawing fully on the policy and technical lessons from the EU.

2017 marks the start of an exciting new phase for the Chinese carbon market. The EU and China will continue their cooperation with a new project to promote robust carbon pricing to support the implementation of the Paris climate agreement, which will come into force next month.