General International Trends and Efforts in Coping with Climate Change

General trends and efforts in coping with
climate change and progress at
international level
Renato Roldao
Supporting the Design and Implementation of Emissions
Trading Systems in China - 中欧碳交易能力建设项目
Beijing, 25th of April 2016
This project/programme is funded by the European Union
Project implemented by: ICF International together with Sinocarbon, SQ Consult and Ecofys

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Table of Contents
1. International context
2. China context
3. Update of EU-China ETS Project
Supporting the Design and Implementation of Emissions Trading Systems in
China - 中欧碳交易能力建设项目

International Context

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1. Paris Agreement
SUPPORTING THE DESIGN AND IMPLEMENTATION OF EMISSIONS TRADING SYSTEMS IN CHINA - 中欧碳交易能力建设项目
 The agreement sets out a global action plan to put the world on track to avoid dangerous
climate change by limiting global warming to well below 2°C.
 The agreement is due to go into force in 2020.
 Mitigation: reducing emissions
– Governments agreed
• a long-term goal of keeping the increase in global average temperature to well below 2°C above pre-
industrial levels;
• to aim to limit the increase to 1.5°C, since this would significantly reduce risks and the impacts of climate
change;
• on the need for global emissions to peak as soon as possible, recognising that this will take longer for
developing countries;
• to undertake rapid reductions thereafter in accordance with the best available science.
– Before and during the Paris conference, countries submitted comprehensive national climate
action plans (INDCs). These are not yet enough to keep global warming below 2°C, but the
agreement paves the way to achieving this target.

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1. Paris Agreement
 Transparency and global stocktake
– Governments agreed to
• come together every 5 years to set more ambitious targets as required by science;
• report to each other and the public on how well they are doing to implement their
targets;
• track progress towards the long-term goal through a robust transparency and
accountability system.
 Adaptation
– Governments agreed to
• strengthen society‘s ability to deal with the impacts of climate change;
• provide continued and enhanced international support for adaptation to
developing countries.

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1. Paris Agreement
 Loss and damage
– The agreement also
• recognises the importance of averting, minimising and addressing loss and
damage associated with the adverse effects of climate change;
• acknowledges the need to cooperate and enhance the understanding, action and
support in different areas such as early warning systems, emergency preparedness
and risk insurance.
 Support
 The EU and other developed countries will continue to support climate action to reduce
emissions and build resilience to climate change impacts in developing countries.
 Other countries are encouraged to provide or continue to provide such support
voluntarily.
 Developed countries intend to continue their existing collective goal to mobilise USD
100 billion per year by 2020 and extend this until 2025. A new and higher goal will be
set after this period.

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2. Signature of Paris Agreement and way ahead
• A total of 175 countries are reported to have signed the Agreement, with 15 of those
countries going a step further and actually submitting “instruments of ratification,
acceptance or approval". This breaks the record for first-day signatures held by any
international treaty.
• China and The European Union were among the Parties that signed the Paris
Agreement on climate change on Friday 22 April in New York. The signing ceremony,
convened by UN Secretary-General Ban Ki-moon, followed the adoption of the world's
first universal climate change agreement by 195 countries in Paris on 12 December
2015.
• Signature means first and foremost that the Parties are signing up to the commitments
made in Paris. It sent also a clear signal that the world is signing up to a fundamental
and ground-breaking transition to a low-carbon economy and society.

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3. Time for action and high level of ambition

Domestic Context

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1. China Nationally Determined Contribution (NDCs) and Actions in the
context of post-Paris Agreement
• On 30 June 2015, the Chinese government submitted its Intended Nationally
Determined Contribution (INDC), detailing its commitment to climate change mitigation
and adaptation for the post-2020 period. Highlights of the INDC include specific goals
such as:
• To achieve peak carbon dioxide emissions by approximately 2030 or sooner as best
efforts allow;
• To lower carbon dioxide emissions per unit of GDP by 60% to 65% from 2005 levels;
• To increase the share of non-fossil fuels in the primary energy mix to approximately
20%;
• To increase the volume of forest stock by approximately 4.5 billion cubic meters over
2005 levels, and;
• To continue to proactively adapt to climate change through: enhanced mechanism-
and capacity-building; the effective management of climate change risks in sectors
such as agriculture, forestry, and water resources, and in regions including urban,
coastal, and ecologically vulnerable areas; improved early warning and emergency
response systems, disaster prevention and mitigation mechanisms.

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2. China and the context of post-Paris Agreement
• China is shifting to a ‘new normal’, powered by an ‘innovative development pathway’
• China’s NDC is a key vehicle in driving the shift onto the innovative development
pathway and towards the ‘new normal’
• However, China faces tremendous uncertainty and challenges in achieving its targets
• To meet the global goal of restricting temperature increases below 2°C, significant
emission reductions will be required beyond 2030, by both China and its international
partners
• As the world's largest developing country, China’s plans and actions can serve as a
model for many other developing countries
• A wide range of policies and measures will be needed to help meet the NDC targets and
drive China’s transition towards the innovative development pathway
• Low-carbon policies are projected to have a net positive impact on employment.

Update of EU-China ETS Project

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1. Description of the action: Objectives / Beneficiaries / target groups
• 3 year project (Jan. 2014 – Jan. 2017)
• Objectives: to support China in meeting the environmental, energy- and carbon-intensity
targets defined in the 12th Five Year Development Plan [and the targets expected in the
13th Five Year Development Plan (2016-2020)].
• To provide technical assistance to support design and implementation of emissions trading systems
in China
• To assist China in its efforts to meet its emission reduction targets and low carbon development in
designing and implementing successful emissions trading pilots that lead over time to successful
nationwide action.
• Beneficiaries: NDRC and local DRC as the project will have a strong focus on National ETS,
but will also engage and take into account ETS Pilots and non-pilots
• Target Groups:
• Representatives for all of stakeholder groups:
– National level authorities
– Local level authorities
– Research Institutes
– Other authorities
– Enterprises/ Sectoral associations
– Third parties

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Results driven project approach

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Key Project Components and Activities flow diagram

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 Activities implemented in China (BJ + SH) and 3 EU Member States (UK, GER, BEL)
 Experts from:
 China
 Austria, Belgium, Germany, Hungary, the Netherlands, Portugal and UK
 AWP1: 12 activities
 AWP2: 8 activities
 AWP3 + Extension activities (10 activities)
 Total 30 project activities (estimated by end of 2016)
 1500+ trainees (estimated by end of 2016)
 250+ training materials, technical presentation and papers (estimated by end of 2016)
Project in Numbers

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May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
TA Activity topic Activity Code Building Block Activity type
Component I: Training and Information Materials
1st two Regional Training on ETS A to Z - Accelerating support for
roll-out of national ETS) - Level 1
A.1/AWPI/C1.B1-B6.
All building
blocks
Training & Info
Materials
P P P D
2nd two Regional Training on ETS A to Z - Accelerating support
for roll-out of national ETS) - Level 1
A.2/AWPI/C1.B1-B6.
Training & Info
Materials
P P D
Processes and techniques for design and operation of cap-setting
including emissions data and BAU projections
A3/AWPI/C1.B2. Cap-setting
Training & Info
Materials
P P D
Economic modelling of cap-setting and allocation options A.4/AWPI/C1.B2-B3
Cap-setting and
Allocation
Training & Info
Materials
P P D
Design options for allocation A.5/AWPI/C1.B3. Allocation
Training & Info
Materials
P P D
Benchmark development A.6/AWPI/C1.B3.
Training & Info
Materials
P P D
Development, implementation and improvements to Monitoring
and Reporting
A.7/AWPI/C1.B4.
Monitoring &
Reporting
Training & Info
Materials
P P D
Monitoring and reporting requirements for sectors I A.8/AWPI/C1.B4.
Training & Info
Materials
P P D
Evaluation of effectiveness of ETS implementation A.9/AWPI/C1.B1-B6. overall/ other
Training & Info
Materials
P P D
Strategic ETS design considerations A.10/AWPI/C1.B1-B6.
Training & Info
Materials
P P D
Component II: Study assignments and experts exchange
ETS Cap Setting, allocation and regulatory framework (1st group
of participants)
A.22/AWPI/C2.B2-B3. Allocation StudyAssignment P P D D
ETS Cap Setting, allocation and regulatory framework (2nd group
of participants)
A.23/AWPI/C2.B2-B3. Allocation StudyAssignment P P D D
P = Preparation of activities
D = Delivery of activities
PHASE II: IMPLEMENTATION PHASE
AWP 1
AWP1

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AWP2

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Activity # Building Block Activity type TAActivity topic dates (Estimated)
A.21/AWPIII/C1.B1-B6.
MRVA,Registry,allocation and other/
overall
Train the Trainers 2nd China National ETSTrain the trainers technical workshop P P D F&W
200 2 trainers Activitystartin the WeekofApril 25th
Ext.E.2 other/overall China/EU jointresearch groups Jointresearch activity on 5 topics +internship atappropriate places P D F&W P D F&W
30 102 researchers Activitystartin the WeekofApril 25th and to
wrap up in the weekofOctober 17th
NEW.A.31/AWPIII.C1.B1-B6
Multiple building blocks:Including
Monitoring and Reporting,other/overall
Training & Info Materials Training for Industry P D F&W P D F&W
120 2 Industry/ SOE One dayin April and one dayin October
NEW.A.32/AWPIII.C1.B1-B6
Multiple building blocks including MRVA,
Registry and MarketOversight,other/
overall
Technical working group
discussion
Training for DG and Senior Directors oflocal DRCs:role,functions and
legislation (followup from AWP1 and AWP2 study assignments)
P D F&W
80 2 DRC-DG/SD July
NEW.A.29/AWPIII.C1.B1-B6. other/overall
Peer to Peer and technical working
group discussion
Senior Experts roundtable discussion assessment/reviewofthe effectiveness
ofan ETS
P D F&W
30 1 senior experts Activityin the WeekofOctober 17th
NEW.A.30/AWPIII.C1.B1-B6. MRVA
Peer to Peer and technical working
group discussion
Senior Experts roundtable on Data,data collection and their verification
including emission data verification
P D F&W
30 1 senior experts Activitystartin the WeekofApril 25th
Ext.E.3 MRVA Peer to Peer training Peer to Peer training on Verification ofGHG Emissions P D F&W
30 10 senior experts
July
Ext.E.4 other/overall public report ProjectReport/publication P D
general public/ public
outreach to be launched backto backwith the October
activitiesand the closing eventofthe project
Ext.E.1 other/overall
Policy Study Tour/High level
political dialogue visitto Brussels
High level policy makers dialogue on ETS:"EU ETSReform and China
National ETS" in Germany +Brussels
P P D F&W
15 8 policymakers
October/ November
A.28/AWPIII.C2.B1-B6. other/overall
Study assignment/Train the
trainers
UK Study assignment"Acelarating readiness for China National ETS" P P P P D F&W
15 14 trainers
September
550 142
ComponentII:Study assignementand experts exchange
# of participants
No. of
days
Target audience
ComponentI:Training and Information Materials
F&W= Followup and wrap up/ post-activity tasks
AWP2PHASE II: IMPLEMENTATION PHASE
AWP3

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 Designing and implementing China’s national ETS is a complex and a joint effort of many
stakeholders (domestically and internationally).
 In the following slides, you will find areas of interest: these are areas where the project
team have contributed positively to the policy design and implementation via this
technical assistance project.
Impacts and Institutional Capacity

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 On a regular basis the project team supports the Chinese officials responsible for
designing China national ETS Policy (and its technical building blocks) as well as those
that will be implementing it/rolling it out post-2017
 It is remarkable to assist China in the development of its ETS system that reflects its
own characteristics and circumstances. However, there are multiple technical building
blocks emerging with similarities to the EU ETS
 China National ETS is now considered the single most important policy tool in China to
reduce GHG emissions and to allow the country to go through a necessary industrial
and economic reform as well as supporting INDC to meet its
 The China ETS is a work in progress. The achievements so far are very relevant
(examples next slide)

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 Key highlights
 The importance of developing roadmaps and actions plans combined with the roles
and functions of the competent authorities has been gradually addressed from the
first regional training to the last study assignment. China is now in the process of
preparing and rolling out “implementation plans” nationwide
 Senior roundtable discussions on ETS co-benefits, MRV, legislation, sectoral coverage,
financial products and instruments, data collection and emissions data verification, etc
 Improvements in monitoring and reporting (e.g. including the use of monitoring
plans)
 Third party verification system for National ETS
 Improvement of the effectiveness of ETS and of allowance allocation approaches
 From the beginning China has decided to include the national ETS, a stability
mechanism that is similar to the EU ETS MSR (to start from 2019 only)
 Train the trainers activities have contributed to the deepening and enlargement of
China’s ETS knowledge basis
 Strategically supported the development of institutional capacity at industry and
sectoral association level
 To build strong institutional capacity for local DRCs, research institutes and other
local entities supporting the local governments

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 1000+ participants directly trained
 Visibility and outreach events
 Newsletter
 Project Banner/ Rollups
 WeChat groups
 LinkedIn group
 Slideshare
 China ETS Knowledge Management Platform
(provide content that can be utilised in a platform
that is under preparation)
 Eurobiz article
Project Communications, visibility and outreach

Thank You!
Renato Roldao, Consulting Director, ICF International, Team Leader EU-China
ETS Project renato.roldao@icfi.com
Sign up to EU-China ETS Project Group https://www.linkedin.com/groups/6971708
Follow the Project on Slideshare http://www.slideshare.net/RenatoRoldao1
Follow ICF on Social Media http://www.icfi.com/contact-us/social-media
Follow me on LinkedIn Follow me on WeChat
https://cn.linkedin.com/in/renatoroldao

General International Trends and Efforts in Coping with Climate Change

General International Trends and Efforts in Coping with Climate Change

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