China, People's Republic of: Developing Tianjin Emission Trading System

Sovereign Project | 45038-001 Status: Closed

Summary

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Project Name Developing Tianjin Emission Trading System
Project Number 45038-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7956-PRC: Developing Tianjin Emission Trading System
Climate Change Fund US$ 550,000.00
Technical Assistance Special Fund US$ 200,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Energy - Energy efficiency and conservation

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome The Tianjin Municipal government has approved the basic framework for Tianjin ETS in March 2013. The key economic sectors to be included in the Tianjin ETS have been identified based on the econometric modeling undertaken under the TA. The emission caps to be imposed on the covered sectors and the emission allocation method to participating entities have been finalized and awaiting approval of the higher authorities. The Tianjin ETS was launched in Q4 2013 and will provide useful lessons to the design of national ETS for PRC.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1.The TA consultants have provided strategic advice and policy recommendations on the overall design of Tianjin ETS which has contributed to the finalization of basic framework of Tianjin ETS in March 2013.

2.The consultants have provided recommendations on the detailed design of Tianjin ETS including the sector coverage, cap setting, allowance allocation and MRV protocols. These recommendations are being incorporated to the detail design of Tianjin ETS. The final approval of the Tianjin ETS including the participant list, overall emission cap , emission allowance allocation and MRV protocols are awaiting approval from then national government and the local authorities.

3.The technical specifications for trading platform and registry have been finalized. The contract for developing the trading platform and registry has been awarded.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The proposed CDTA is included as Institutional Innovations of PRC's Emissions Trade Market in the memorandum of understanding between ADB and the Government of PRC for country program for 2011 2013. A reconnaissance mission has been fielded in January 2011 to define the broad scope of the CDTA. There have been several missions in March 2011 and in July 2011 to finalize the scope of the TA, taking into account the recent development in the establishment of emission trading in PRC. During the fact finding mission in October 2011, the scope of the TA and the implementing arrangements have been finalized in consultation with relevant agencies of Tianjin Municipal goverment.
During Project Implementation Tripartite meetings among ADB, the executing and implementing agencies, and the consultants will be held at the commencement and conclusion of each output to provide guidance to the consultants and to review their reports. Workshops and seminars will be conducted to collect comments on consultants reports and disseminate the main findings of the TA. The relevant stakeholders including likely partcipants of Tianjin ETS, muncipal govrnment and central government officials as well as academia have been consulted through consultation workshops to obtain their views on the proposed market design.

Business Opportunities

Consulting Services The TA will be carried out by a team of international (6 person-months) and national consultants (18 person-months) having extensive knowledge and expertise in (i) energy economics and industrial policy, especially policies pertaining to low-carbon development in the PRC; (ii) the design and regulation of ETSs in other parts of the world; and (iii) developing technical specifications for ETSs and emission allowance registries. The consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time) using the quality- and cost-based selection method (with a quality cost ratio of 80:20). The consulting firm will be required to submit a simplified technical proposal covering all aspects of the terms of reference.
Procurement All procurement will be carried out using the shopping method in accordance with ADB's Procurement Guidelines (2010, as amended from time to time) by the implementing agency. All equipment, including the software and hardware systems purchased under the TA, will be turned over to the implementing agency after TA completion. A software design company for the development of the trading platform and registry, based on the technical specification prepared by the consulting firm, will be recruited through fixed budget selection by ADB as (i) the detailed technical specification for the software system and the inputs required would have been finalized by the TA consultants, and (ii) the budget is fixed and cannot be exceeded. The selection criteria will include the ability to provide continuing service for software maintenance and upgrades beyond the time frame covered in the initial contract and local presence in the PRC.

Responsible Staff

Responsible ADB Officer Pradeep Perera
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Tianjin Finance Bureau
Foreign Economy Division
No. 4 Qufu Road, Heping District
Tianjin, People's Rep of China

Timetable

Concept Clearance 21 Oct 2011
Fact Finding 23 Oct 2011 to 29 Oct 2011
MRM -
Approval -
Last Review Mission -
Last PDS Update 30 Sep 2014

TA 7956-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2011 13 Jan 2012 13 Jan 2012 31 Dec 2013 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 09 Dec 2011 724,629.66

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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