China is increasingly at the centre of discussions about climate policy, as its government is designing a nationwide greenhouse gas emission trading system (ETS) to be implemented in 2017. The European Union (EU) is supporting this effort by sharing expertise about and experiences from Europe's ETS – the world's biggest and longest-running carbon market – with Chinese experts and policymakers. China is already home to several pilot ETS in various provinces, which constitute active carbon markets from which to gain experiences that can inform the future national programme.
Matthias Duwe, head of climate change policy at Ecologic Institute, was chosen to be one of the lead experts contributing to an EU-China dialogue supporting China's national ETS design and implementation. Focusing on the markets that result from creation of tradable emission permits, he travelled to Beijing for two project workshops at which he provided input on the trading aspects (particularly liquidity) of the EU carbon market in its early years – he also presented an overview of how the relevant actors, traded products, and volumes have evolved over the past decade in the EU. Beyond the dialogue's in-person meetings, Duwe co-authored a joint paper with Chinese ETS analysts comparing carbon market liquidity in Europe and in the Chinese pilot ETS. The paper, which is not public, serves as an advisory document to Chinese policymakers designing the country’s national ETS.