Final Evaluation of the "Support the Platform for Policy Dialogue and Cooperation between EU and China on Emission Trading" project

China committed itself to decrease the CO2 intensity of its GDP by 60 to 65% by 2030 compared to 2005. One important key-stone to achieve its long-term GHG emission reduction target is the establishment of a domestic emission trading system (ETS). This ETS is meant to become a major climate policy tool to help China realize its Nationally Determined Contribution (NDC) to the Paris Agreement on climate change and its long-term low-carbon strategy. The first discussions on a national ETS in China started in 2011, and in 2013 pilot projects were initiated. Designed as a cap-and-trade approach, the national trading system was originally pledged by China's President Xi Jinping ahead of the Paris Climate Accord in 2015. In 2017, China announced the launch of the national ETS, designed to include all major industrial sectors. However, for a long period, there has been no trading and relevant regulations have not been issued, e.g. concerning Monitoring, Reporting and Verification (MRV) of the sectoral emissions and the initial allocation of the emission certificates (grandfathering or auctioning) etc. Activities, such as the set-up of an emission trading network and the joint research activities between EU and Chinese ETS experts, provided further support for the development of the Chinese ETS. A mechanism was designed to keep improving knowledge sharing elements of the project by an effective exchange of information and experience among Chinese emission trading practitioners as well as to provide tailor-made input for the solution of specific challenges and problems that may arise from or appear after the roll-out of the national ETS. The main objectives of this evaluation were to provide the relevant services of the European Union, the interested stakeholders with: an overall independent assessment of the past performance of the " Platform for Policy Dialogue and Cooperation between EU and China on Emission Trading" project, paying particular attention to its results measured against its expected objectives; and the reasons underpinning such results; key lessons learned, conclusions and related recommendations in order to improve current and future Actions. The evaluation assessed the intervention(s) using the six standard DAC evaluation criteria, namely: relevance, coherence, efficiency, effectiveness, sustainability and early signs of impact. In addition, the evaluation assessed the intervention(s) through an EU specific evaluation criterion, which is the EU added value.