The World Bank Implementation Status & Results Report China Partnership for Market Readiness (P145586) China Partnership for Market Readiness (P145586) EAST ASIA AND PACIFIC | China | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 11 | ARCHIVED on 25-Feb-2020 | ISR39945 | Implementing Agencies: People's Republic of China, National Center for Climate Change Strategy and International Cooperation (NCSC) Key Dates Key Project Dates Bank Approval Date: 16-Jun-2014 Effectiveness Date: 16-Feb-2015 Planned Mid Term Review Date: 23-Jan-2017 Actual Mid-Term Review Date: 17-Jan-2017 Original Closing Date: 30-Jun-2018 Revised Closing Date: 28-Feb-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to enable China to design a national carbon emissions trading scheme. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enable design of key building blocks for a national carbon emissions trading scheme (ETS):(Cost $6.50 M) China PMR synthesis report, consultations and project management:(Cost $2.20 M) Enabling Market Mechanism and Creating Investment Climate:(Cost $1.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The original grant's research activities supported the delivery of a number of important policies that are laying the critical foundation of China’s emissions trading system (ETS). This has contributed to the soft launch of the national ETS in Dec 2017. New activities under Component 3 will support the national ETS policy agenda transitioning from design to implementation. Over the past few months, policy reform in the government has led to delay in procurement of the new activities. 2/25/2020 Page 1 of 6 The World Bank Implementation Status & Results Report China Partnership for Market Readiness (P145586) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes to support China designing the national ETS IN00783867 ►Submission of a proposal for the national ETS design (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Submission of Value N/A Under Implementation Achieved Proposal Date 01-Apr-2014 16-May-2018 30-Dec-2019 01-Mar-2019 The PDO indicator has been met by the Department of Climate Change submitted the proposal of the national ETS design to the Minister of Environment and Ecology. The draft regulation developed based on Comments: the proposal has been submitted by the Ministry to the State Council for a higher level legislative process. Overall Comments PDO The research activities provided critical outputs informing the design of China's national ETS. The Department of Climate Change submitted the proposal of the overall ETS framework and work plan, based on which the Department also led the deliberation of the policy design since its relocation from the NDRC to the MEE in 2018. The MEE has endorsed the design and committed to launch of the ETS's first phase starting with the power sector in 2020. Intermediate Results Indicators by Components 2/25/2020 Page 2 of 6 The World Bank Implementation Status & Results Report China Partnership for Market Readiness (P145586) Enabling Design of Key Building Blocks for a National Emissions Trading Scheme (ETS) IN00783869 ►Proposal on methodologies of scope, coverage, cap setting and allocation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A Under implementation Completed Report Date 01-Apr-2014 20-Jun-2019 31-Jan-2020 28-Feb-2020 The research report is completed. Sectoral allocation methodologies have been reviewed and accepted by the DCC, which forms a core part of the overall design of the national ETS. The MEE has Comments: committed to the launch of the first phase of ETS with the power sector participation in 2020. IN00784007 ►Proposal on legal framework and oversight system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A Under implementation Completed Report Date 01-Apr-2014 20-Jun-2019 31-Jan-2020 28-Feb-2020 The sub-component supported the draft legislation proposal. Final research report has been delivered. Policy recommendations have directly contributed to the design of the management and supervision Comments: framework of the national ETS. IN00784009 ►Proposal of MRV system for the national ETS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A Under implementation Completed Report Date 01-Apr-2014 20-Jun-2019 31-Jan-2020 28-Feb-2020 The final report is completed. The outputs of the research formed critical guidance to the establishment of Comments: the initial monitoring, report and verification framework of GHG in China. IN00784010 ►Proposal to improve the ETS registry (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A Under implementation. Completed Report Date 01-Apr-2014 20-Jun-2019 31-Jan-2020 28-Feb-2020 The research report is completed. Comments: IN00784011 ►Thematic report on SOEs (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/25/2020 Page 3 of 6 The World Bank Implementation Status & Results Report China Partnership for Market Readiness (P145586) Value N/A Under implementation. Completed Report Date 01-Apr-2014 20-Jun-2019 31-Jan-2020 28-Feb-2020 Research report is completed, providing important technical support to the supervision and coordination of Comments: SOE's GHG emissions regulation. IN00784012 ►Thematic report on Power Sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A Under implementation Completed Report Date 01-Apr-2014 20-Jun-2019 31-Jan-2020 28-Feb-2020 Research report is completed. Findings and recommendations provided important inputs to sub- Comments: component 1.1. China PMR Synthesis Report, Consultations and Project Management IN00783870 ►Synthesis report (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A Not yet due Under implementation Synthesis Report Date 01-Apr-2014 20-Jun-2019 12-Feb-2020 28-Feb-2020 The synthesis report has started, expected to complete in July 2020. Comments: Enabling Market Mechanism and Creating Investment Climate IN00783868 ►Supplementary regulatory system informed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Studies on Studies on Value supplementary regulatory supplementary regulatory Under implementation Studies done. not done yet. not done yet. Date 08-Sep-2018 20-Jun-2019 12-Feb-2020 28-Feb-2020 The activities are under implementation with delay. Comments: IN00784006 ►Allocation methodologies and mechanisms informed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Allocation mechanisms Allocation principles Studies on allocation Value Under implementation not studied. issued. mechanisms done. Date 08-Sep-2018 20-Jun-2019 12-Feb-2020 28-Feb-2020 Comments: Activities are under implementation with delay. 2/25/2020 Page 4 of 6 The World Bank Implementation Status & Results Report China Partnership for Market Readiness (P145586) IN00784008 ►Forward looking policies for a liquid market informed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Studies done on No design on promoting No design on promoting Value Under implementation forward looking carbon trading carbon trading. policies Date 08-Sep-2018 20-Jun-2019 12-Feb-2020 28-Feb-2020 Activities are under implementation with delay. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P145586 TF-17222 Effective USD 10.00 10.00 0.00 7.49 2.51 75% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145586 TF-17222 Effective 23-Dec-2014 23-Dec-2014 16-Feb-2015 30-Jun-2018 28-Feb-2020 Cumulative Disbursements 2/25/2020 Page 5 of 6 The World Bank Implementation Status & Results Report China Partnership for Market Readiness (P145586) Restructuring History Level 2 Approved on 06-Nov-2017 ,Level 2 Approved on 16-Apr-2018 Related Project(s) P166983-China Partnership for Market Readiness 2/25/2020 Page 6 of 6