Norwegian contributions in emissions trading project

China will launch a national emissions trading system (ETS) in 2017. The Norwegian Environment Agency and Chinese authorities has for several years cooperated on preparations through a joint project coordinated by the United Development program (UNDP), financially supported by the Norwegian Embassy in Beijing.

Project partners on the Chinese side are the National Development and Reform Commission (NDRC), the National Center for Climate Change Strategy and International Cooperation (NCSC), Tsinghua University and SinoCarbon.

The Norwegian Environment Agency and the partners in China have done a solid piece of work so far. It is important for all sides, and not least the climate, that the good cooperation will continue.


World's largest greenhouse gas emitter

China accounts for about a quarter of the world's total greenhouse gas emissions. This implies that the country is the largest greenhous gas emitter in the world, and the emissions have grown rapidly for several decades. The country's authorities have set a target for emissions to reach the top as soon as possible and by 2030. The ETS is the most important instrument China has launched so far to help reduce the emissions.

Extensive cooperation
The guidelines for measurement and reporting of emissions for a number of selected sectors were developed during the first phase of cooperation between Norway and China, and with significant contributions from the Norwegian Environment Agency.

In phase two, taking place in the period 2016–2018, the cooperation shall in particular contribute to:

  1. an effective and efficient allowance      allocation system
  1. implementation plans for the national ETS on provincial level
  2. activities to deepen and expand capacity building
  3. design of a China carbon trading information platform

The Norwegian Environment Agency will contribute with experiences from the introduction of the national ETS in Norway, which became part of the EU ETS in 2008. The Chinese ETS which will cover China's 34 provinces, and the EU ETS with its 28 member states plus Norway, Iceland and Liechtenstein, are constructed in a similar way.

The total budget for phase two of the partnership is 35 million NOK. About.9 million NOK is set aside to cover the Norwegian Environment Directorate's expenses.