Smog over Shanghai. Photo by Lei Han/Flickr.
China’s National Development and Reform Commission (NDRC) created GHG accounting and reporting guidelines for 10 industries, using the GHG Protocol’s (GHGP) framework and methodologies created by WRI and WBCSD. In 2014, NDRC mandated GHG reporting for more than 20,000 companies and organizations, all of which will measure and manage emissions based on GHGP guidelines.
The Challenge
China’s size and rapid growth have made it an economic powerhouse. Yet it’s come at a cost: China is the world’s leading greenhouse gas emitter, burning almost as much coal as the rest of the world combined. The country’s energy and manufacturing sectors account for more than 80 percent of its energy consumption.
Despite Chinese companies’ role in fueling climate change, most do not measure or manage their greenhouse gas emissions.
WRI’s Role
WRI, in partnership with the World Business Council for Sustainable Development (WBCSD), created the Greenhouse Gas (GHG) Protocol Corporate Standard, a framework for companies to consistently, accurately account for and reduce emissions. In 2013, China’s National Development and Reform Commission (NDRC) created GHG accounting and reporting guidelines for 10 industries, using the GHG Protocol’s framework and methodologies as a reference. In 2014, NDRC mandated GHG reporting for more than 20,000 companies and organizations, all of which will measure and manage emissions based on guidelines mentioned above. Companies reporting their emissions as part of China’s pilot Emission Trading Scheme (ETS)—which comprises five cities and two provinces—will also use the standards.
Since 2009, WRI has organized regular workshops and training with NDRC and local officials to make the case for mandatory emissions reporting. WRI worked closely with the China Business Council for Sustainable Development and the China Electricity Council to develop GHG accounting methodologies specifically for the chemical and power sectors. And WRI experts advised on the development of online GHG reporting systems for Jiangsu Province, Guangdong Province and Qingdao city.
The Impact
NDRC has laid the political and technical groundwork for a national GHG reporting program. It will raise companies’ awareness on carbon management and help the government track emissions performance. Measuring emissions is the first step in getting companies to reduce them. If China — the world’s biggest emitter — can decrease its corporate sector emissions, it would help prevent warming globally.
What’s more, a robust GHG reporting program is imperative for creating a national emissions trading scheme, which is a key policy instrument for China to mitigate GHG emissions.