GIZ Capacity Building for ESG Regulation and Carbon Markets in China

FutureCamp, in collaboration with The Climate Desk, supports GIZ in delivering capacity-building programs focused on ESG regulation, corporate sustainability reporting, and carbon market mechanisms in China. The initiative builds upon past efforts to enhance corporate carbon reporting, fraud prevention, and supervisory mechanisms in emissions trading. The project aims to strengthen China’s approach to carbon reporting and align it with European regulatory frameworks such as the EU Emissions Trading System (EU ETS), the Corporate Sustainability Reporting Directive (CSRD), and the Carbon Border Adjustment Mechanism (CBAM).

Key activities include:

• Policy research and knowledge dissemination: Developing a comprehensive report detailing best practices from the EU, including insights into fraud prevention, compliance structures, and carbon market supervision.
• Capacity-building workshops and expert consultations: Organizing and facilitating training sessions for Chinese stakeholders on emissions reporting, ESG integration, and financial sector engagement.
• Stakeholder engagement: Engaging with Chinese government agencies, industry representatives, and financial institutions to exchange best practices on ESG reporting and carbon market supervision.
• Integration with financial reporting: Exploring the intersections between carbon emission disclosure and financial risk assessment under global regulatory frameworks.

The project is structured to provide practical insights into European regulatory experiences while adapting them to China’s evolving policy landscape. Special focus is given to developing robust MRV (Monitoring, Reporting, and Verification) systems and ensuring harmonization with emerging ESG standards.