EU-China ETS Project Quarterly Newsletter #2 - 中欧碳交易能力建设项目

This Newsletter reflects only the views of the author. The European Commission cannot be held responsible for the content of this publication

Introduction of EU-China ETS project

"Supporting the Design and Implementation of Emissions Trading Systems in China" (EU-China ETS Project) started on January 20th 2014, and is due to be completed by January 19th 2017. The overall objective of the project is to support China in meeting the environmental, energy- and carbon-intensity targets. By providing technical assistance on the utilization of market-based instruments, the specific objective of the project is to assist China in its efforts to establish the national ETS and meet its emission reduction and low carbon development targets.

April activities related with Cap Setting and Allocation took place in Beijing

Deputy Director-General Jiang Zhaoli addressing participants during the last day of training

Two days of training on cap setting and allocation related topics took place on 25-26 of April 2015 at China People’s Palace Hotel in Beijing. This was the last activity within the first annual work plan (AWP1)

This activity was designed in a practical and condensed way that helped a) to explain the design choices that are being taken at National/ Central level regarding cap setting and allocation to the various local stakeholders (with strong focus on local DRCs); b) to facilitate the setup of local DRC teams for the implementation of the cap setting and allocation tasks given to them by the NDRC; and c) to get a better understanding of the type of data needed to support the NDRC in the cap setting and allocation processes. There were presentations from pilot and non-pilots representatives. Mr. Johannes ENZMANN presented on behalf of DG CLIMA (EU ETS regulator) and Ms. Trine BERNTZEN presented on behalf of the Norwegian Environment Agency (Norway's competent authority for EU ETS). In the context of this activity an "ETS Trading simulation game" was also prepared by Environmental Defence Fund (EDF).

Participants working in groups: playing the simulation game and discussing their assignments

Fast-forward into the 2nd year of the project: The AWP2

The implementation phase of this project will last for 30 months. The second annual workplan (AWP2) of this project is being implemented between May and December 2015. During this period we will provide additional training and capacity building for approximately 500 Chinese participants. By the end of 2015 we will have trained approximately 1000 participants under this project. AWP2 activities were introduced during the second Project Steering Committee (PSC) meeting that took place in late April.

Second meeting of EU-China ETS Project Steering Committee

In June, two activities took place: 1) national ETS workshop - train the trainers and 2) training for State-Owned Enterprises (SOEs) senior managers. In September a group of Chinese delegates is visiting the United Kingdom (UK) on a study assignment that as part of the "train-the-trainers" activities. In the second half of October there will be another full week of project activities scheduled to take place in Beijing. Later in November another Chinese delegation will be travelling to Germany to take part in another ETS study assignment that will allow the participants to learn from the practical experience acquired within that country under EU ETS.

National ETS Workshop: Train-the-trainers

"Train-the-trainers" will increase the impact of the project and the number of those that can directly and indirectly benefit from it.

Over 200 participants attending train the trainers workshop in Beijing

"The National ETS workshop: Train the trainers" took place at China Hall of Science and Technology, in Beijing, from 8th to 10th of June 2015. This was the largest activity organised so far in the context of EU-China ETS project with over 200 participants attending it. The objective of this activity was to train Chinese trainees with the capacities to serve as future trainers on ETS in China. Many of the participants have been involved in previous trainings under this or other projects or will gain further capacity in the context of this technical assistance program.

Jiang Zhaoli, Deputy Director-General of the NDRC Climate Change department addressing the participants of the train the trainers workshop

Wang Shu, Deputy-Director of NDRC Climate Change Department making a presentation about the latest developments and next steps to prepare the start of national ETS by early 2017

Renato Roldao, Project Team Leader (ICF International) during the opening session

The participants had pre-existing knowledge of ETS design and implementation and will be able to further develop their own capabilities (post-training). During the activity they learnt about: a) ETS policies, guidelines and upcoming regulatory framework; b) compulsory and voluntary roles, responsibilities and functions that will enable the provincial level participation in the national ETS.

After taking part in this training the participants will be able to: a) become part of the pool of local ETS experts; b) identify their own provinces’ priorities, needs and barriers, and c) train more local human resources creating a multiplier effect to support national ETS implementation.

Training for Senior Mangers of China's State Owned Enterprises (SOEs)

Senior managers from selected China's SOEs listening to presentations from other peer industry representatives

The activity took place in Beijing on 11-12 June 2015. More than 60 Senior Managers from selected SOEs (mainly large emitters belonging to one of the 6 sectors to be covered under future National ETS) were trained on ETS operational topics to be able to lead the preparation of their respective enterprises to deal with emissions trading.

The participants had previous access to background knowledge of ETS design and implementation and will be able to continue developing their own capabilities within their companies. The training materials shared during the session helped them to learn detailed contents and experiences that can be further applied at corporate level. This content can be easily shared and disseminated within each company. The project will organize follow up webinars throughout the following months that can go deeper in some of the topics and allow a larger audience to have access to useful technical content and practical experiences.

This training supported the SOEs' managers to learn the latest information about China ETS related policies, guidelines and regulations. Through this training they became aware of both compulsory and voluntary roles, responsibilities and functions at corporate level to participate in the national ETS.

It was very useful and timely to organise such an activity to senior managers as they will have an important task ahead to: a) lead and manage (within their respective enterprises) core corporate expert teams; b) identify their own enterprises’ priorities, needs and barriers, and c) facilitate the training of additional corporate level staff to support their operation and compliance under national ETS. This was a great opportunity for senior managers to learn directly from extensive and on-going ‘hands-on’ EU ETS and China ETS pilots experience and expertise. European Companies' representatives like Air Liquide and EDF Trading made presentations to their Chinese industry peers.

Vicky Pollard, EU Delegation in China addressing the audience of industry representatives 

Other information resources related with ETS

For further information about the project please contact us: Room B992, Gehua Tower, No.1 Qingdong Bystreet, Dongcheng District, Beijing 100007

Email: Renato.roldao@icfi.com

This project/programme is funded by the European Union under the Service Contract No. : DCI-ASIE/2013/334-592

Project implemented by: ICF International together with Sinocarbon, SQ Consult and Ecofys

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