Annual Project Report Provincial Greenhouse Gas Emissions Inventory Capacity Building and Greenhouse Gas Emissions Accounting Methodology for Enterprises of Key Industries Project (GHG) [Feb26, 2014] Basic Project Information Project Title: UNDP Award ID UNDP Project ID CRIS Contract Number Project Duration Reporting Period Total Approved Project Budget Participating UN agencies Implementing Partners/ National collaborating agencies 00063572 00080583 n/a 3 year (2011-2014) January 1, 2013-December 31, 2013 International collaborating agencies Cost-sharing third parties UNDP Contact officer Project website NEA Norway Wu Peng NOK 33,509,300 UNDP China National Development and Reform Commission (NDRC), The Norwegian Environment Agency (NEA) 1. Executive Summary Effective mechanism for public and private sector from both China and Norway/Europe to work together for guidelines and templates of GHG accounting and reporting. Systematic and participatory trial application approach developed through formulation, testing, feedback and revision for all relevant stakeholders to work together to ensure the guidelines and templates are enforceable cost-effective and practical. An effective process of sharing, trial, application, feedback, further sharing and summary for the international knowledge sharing between China and Norway/EU is in place to ensure the knowledge sharing really contribute to inventory monitoring and report guideline development. Comprehensive knowledge and experience from both public and private sector on guidelines and monitoring/reporting were shared through NEA for guidelines and reporting template development in China. Guidelines for 10 sectors were published on website which is well ahead of plan. Provincial capacity was enhanced for guidelines and reporting through 4 workshops with 500 government officials from central, northwest, north and east of China. With successful seminars and testing, the guidelines and reporting under formulation were further revised for better technical and managerial application for both public and private sector. This annual report covers the reporting period of January 2013 – December 2013. 1 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 2. Context Global climate change caused by greenhouse gas (GHG) emissions has drawn the international society’s attention. China has became the largest global emitter of CO2 emissions (in aggregate terms not per capita) in the world, and the Chinese government has been taking various measures to reduce GHG emission and mitigate climate change. Among them, China is committed to cut the CO2 emission per unit of GDP by 40–45% by 2020 against the 2005 level. China’s National Development and Reform Commission (NDRC) launched in 2011 carbon trading in seven regions of Beijing, Tianjin, Shanghai, Chongqing and Shenzhen, as well as the provinces of Guangdong and Hubei, seeking to gain experience in carbon related market mechanisms ahead of launching a national CO2 market later by 2020. The pilots are part of the key endeavours in China's 12th Five-Year Plan (2011-2015) and it is hoped to roll out the carbon market to other regions and eventually across the nation in the 13th Five-Year Plan (2016-2020). China hopes to extend its pilot carbon emission trading system (ETS) to across the nation in its new five-year plan starting 2016. The relatively short timescale for the world’s most populous country to construct and implement a complex trading scheme poses a number of challenges. Data quality is top of the list since high quality data is a prerequisite for Cap and trade (doesn’t work if you don’t know what you’re capping). Following the launch of the ETS pilots, new measuring, reporting and verification (MRV) guidelines have been introduced, but given the potentially huge money transfers involved, proving these work will underpin trust in the system and access to good data. The provincial GHG inventories are important as they provide information on trends in GHG emissions and removals within the provinces. This in turn allows China’s policy makers to adopt measures to reduce emissions and increase removals in a more effective and reliable manner. Non-Annex I (NAI) Parties under the United Nations Framework Convention on Climate Change (UNFCCC) are required to prepare GHG inventories as part of National Communications (NCs) to be periodically submitted to the Conference of the Parties (COP) under the UNFCCC (Article 4 and 12). At the COP13 (Bali) held in December 2007, the importance of measurable, reportable and verifiable (MRV) nationally appropriate mitigation actions (NAMAs) taken by the developing country Parties has been recognized in the implementation of the Convention (Decision 1/CP.13, 1 (b) (ii)). Subsequently, the G8 Environmental Ministers Meeting held in Kobe in May 2008 stated in its Chair’s Summary that setting up and running GHG inventories in developing courtiers is of fundamental importance in order to enhance the NAMAs of NAI Parties in Asia. Under this context, the Norwegian-supported UNDP project, Provincial Greenhouse Gas Emissions Inventory Capacity Building and Greenhouse Gas Emissions Accounting Methodology for Enterprises of Key Industries (a. k. a. “the GHG project”) has been designed and implemented to assist the Government of China to better address climate 2 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 change through capacity building and building up a sound Greenhouse Gas emission accounting system at enterprise level for carbon trading. To achieve this, the GHG project will take two actions: 1) in order to lay a good foundation for local governments to develop climate change policies and accomplish GHG control target, the project will use "Guidelines on Provincial Greenhouse Gas Emission Inventory (Trial)", issued by the National Development and Reform Commission (NDRC), as the teaching materials, to implement training activities nationwide and strengthen capacity of related local governments and agencies; 2) inter alia to make preparations for GHG trading and permit allocation, the project will also develop a set of GHG accounting methodologies for certain industries, as well as GHG reporting and verification methodologies, by combining the analysis of the characteristics and the typical manufacturer in sectors such as power generation, iron & steel, cement, glass, Nonferrous metal, chemicals and aviation industry in China with the existing relevant accounting methodologies. On basis of these, key outputs include: a) Provincial Greenhouse Gas Emissions Inventory Capacity Building; and b) A set of GHG emissions accounting methodologies for enterprises of key industries. Most of the planned activities are implemented as scheduled by the three domestic technical teams (or sub-contractors) working, i.e. Tsinghua University, NCSC, and SCII), as well as one international partner, Norwegian Climate and Pollution Control Agency (a. k. a. “NEA”). 3. Key results Four capacity building workshops on GHG inventories for provinces have been arranged according to the plan Nine Monitoring and Reporting Guidelines for 6 key sectors have been developed and issued. The main activities in the project including Norwegian experts were: Output 1 - Capacity building: Four capacity building workshops were held in 2013: These capacity building workshops were organized and chaired by NCSC, and NDRC participates in the first morning sessions every time. 5 provinces participate each time, altogether 80 – 100 people. The first workshop in 2013 was carried out in June 2013 in the Hunan province, and Norway participated with Mr. Torgrim Asphjell from the Environment Agency, and Mrs Marte Kittilsen from Statistics Norway. The second workshop was carried out in July 2013 in Inner Mongolia, and Norway with Mr. Torgrim Asphjell from the Environment Agency. The third workshop was carried out in August 2013 in the Heilongjang province, and Norway was represented by Mrs. Elin Økstad from the Environment Agency and Mr. Johannes Breidenbach from Norwegian Forestry and Landscape Institute. The last workshop was held in the Wuichan province, and from Norway participated with Mrs. Elin Økstad from the Environment Agency. The Norwegian experiences are given both in the distributed textbook and as a presentation at the workshop. The presentation is modified according to 3 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 the field of expertise participating, and in the Heijogjang province the forestry sector was particularly highlighted. Output 2 – GHG Monitoring and Reporting Guidelines for key sectors - Norwegian experts gave input to the draft monitoring and reporting guidelines in workshop and meetings in Beijing in April 2013. - Norway was responsible for a workshop on monitoring, reporting and quality control of industry in a workshop in Beijing in April 2013. -All together 9 draft guidelines were issued under this contract in December 2013, produced by the Chinese partners, ready for further testing. These guidelines comprise the following sectors Iron and steel Chemical industry (including methanol, calcium carbide, ammonium, ethylene) Non-ferrous metals (aluminum, magnesium) Building materials (flat glass, cement) Power industry (thermal power plant and grid company) Aviation Output 3- Project management From summer 2013 the project scoping has been increased, and the Norwegian Work plan has now been developed with the aim and budget of producing Monitoring and Reporting Guidelines for 8 additional sectors. These sectors are: • Transportation sector • Building sector • Machinery and equipment manufacturing sector • Non-ferrous metals • Papermaking sector • Food manufacture sector • Mining sector (except for coal mining) • Other rest of sector (common guideline; fuel emissions) 3. Progress of the GHG in 2013 The planned results of the GHG project (Result 1: Provincial Greenhouse Gas Emissions Inventory Capacity Building; and Result 2: A set of greenhouse gas emissions accounting methodologies for enterprises of key industries) will be achieved through the following activities and outputs: Activities and Outputs 4 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 Output1: Provincial Greenhouse Gas Emission Inventory Guideline Capacity Building Activity 1.1 Select 6 training places in different areas including eastern China, southern China, central China, northern China, southwest China and northwest China. Make training plans including list of major trainees and participating experts, time of training, training content and training forms/Provincial greenhouse gas emissions inventory training conferences and summary reports The draft work plan was worked out in 2012 but it kept on updated and polish with more details through 2013. Activity 1.2 Amend, improve and print training materials/Provincial greenhouse gas emissions inventory training conferences and summary reports The draft of the training textbook was developed and amended including the uncertainty management of Norwegian experience in 2012. The textbook was used in the 6 training workshops. And the amendment of the textbook was undergoing after each workshop throughout 2012 and 2013 and it was published on the website in October 2013. Activity 1.3 Coordinate with all stakeholders, organize and implement 6 training activities in different areas following the training plans/Provincial greenhouse gas emissions inventory training conferences and summary reports The 4 training workshops were organized in Changsha City, Hunan Province, Hohhot City, Inner Mongolia, Yichun City, Heilongjiang Province and Jianyang City, Fujian Province respectively covering the area of Central, Northwest, North and East of China. All trainings were completed with success, with about 400 people from 21 provinces and municipalities have been trained. Activity 1.4 Collect and record feedbacks from different stakeholders in all training activities, evaluate training effectiveness, write training effectiveness evaluation reports and project implementation report/Provincial greenhouse gas emissions inventory training conferences and summary reports Comments from the trainees were collected and were analyzed. Through the comments, the participants got clarified understandings about the inventory development. Because the problem they met for different provinces were quite in common, and the answers are consistent and unified, the inventory developers could correct or modify their work in a unified way. So the provincial level inventory get more unified and consistent so as to increase the comparability of the inventory work among all the provinces for more effect management at the central level. The project implementation report was completed in 2013. Activity 2.1 5 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 Study existing enterprise-level greenhouse gas emission accounting methodologies and their successful experience/Research on greenhouse gas emissions accounting, reporting contents and format for enterprises of key industries, and its application Done in 2012 Activity 2.2 Research on enterprise-level greenhouse gas emission accounting methodology for China’s cement, flat glasses, non-ferrous metal, chemical, power generation and aviation industries/Research on greenhouse gas emissions accounting, reporting contents and format for enterprises of key industries, and its application The GHG gas emission accounting methodology guidelines for 10 sub-sectors were issued to the public on website and through other channels by NDRC in November 2013. The development and revision of accounting methodologies for the enterprises in cement, flat glasses, electrolytic aluminium and magnesium smelting sectors were kept on going based on the consultation meetings with government officials and sector experts. In the first quarter of 2013, the idea of GHG emissions accounting methodology for chemical sector was to calculate by each specific emission source and the major emitters were identified as ammonia production plants, calcium carbide production plants, ethylene production plants and methanol production plants, the NCSC (National Centre on Climate Change Strategy and International Cooperation) team drafted 4 different modules of GHG Accounting and Reporting Guidelines for each of the above-mentioned sub-sectors. On April 18th, 2013, at the discussion workshop hosted by the DCC-NDRC (The Department of Climate Change of The National Development and Reform Commission), the industrial experts from ammonia and methanol association, and experts from ethylene production, commented that identifying and accounting GHG emissions from each specific emission sources may be too complicated for chemical plants, the experts suggested that a carbonmass-balance at plant level is a more practical and cost-effective methodology for chemical plants in China, and the workshop accepted these suggestion. The NCSC team revised the GHG Accounting and Reporting Guidelines, which provided methods and formulas accounting CO2 emissions on the basis of carbon-mass-balance at plant level, plus methods and formulas for accounting N2O emissions from production of nitric acid and/or adipic acid. During the second quarter, this new GHG Reporting Guideline for chemical plants has been peer-reviewed and face-to-face discussed with experts from China Petroleum and Chemical Industry Federation, China Nitrogen Fertilizer Industry Association, China Carbide Industry Association, and China Ethylene Industry Association. On 29th August 2013, DCC-NDRC organized a general discussion and co-drafting meeting for enterprise-level GHG emission accounting methodology and reporting guidelines for production of chemicals, iron & steel, primary aluminium, magnesium, cement, flat glass, ceramics, power generation, power T&D, aviation. More than 10 experts from relevant industrial associations were invited. This workshop reviewed and defined the common template of these guidelines. Based on the trial application and the above-mentioned common template, the NCSC team refined the draft of GHG Emission Accounting Methodology and Reporting Guideline for Chemical Enterprises in China; 6 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 On 15 October 2013, the NDRC published online (http://www.ccchina.ogv.cn) the GHG Emission Accounting Methodology and Reporting Guidelines for these 10 industrial sectors, i.e. production of chemicals, iron & steel, primary aluminium, magnesium, cement, flat glass, ceramics, power generation, power T&D, aviation. Desk studies of iron & steel works carbon flow, including international survey. Desk study on MRV experience of iron & steel works, field visit to 1-2 works, identification of systems boundary and GHG category. Prepare guideline of GHG inventory of iron & steel works (draft report). Prepare guideline of GHG inventory of iron & steel works (final report) During the period of from January to March 2013, project team completed the development of draft accounting guideline for Chinese aviation enterprises based on the literature review and overall investigation on the aviation companies and airports. With the participation from NDRC, CACC, Civil Aviation University of China, China Eastern, BCIA, NCSC and Project team, NDRC held a seminar on the GHGs emission accounting guideline to discuss the draft of accounting guidelines for Chinese aviation enterprises. During the discussion, project team got positive feedback from the experts and the guideline need only trivial changes. After the workshop, the guideline was adjusted according to the feedbacks from experts. The accounting method was revised based on the application result. Modifications of the accounting guidelines and reporting template were made based on relevant comments from experts and selected enterprises. 5 seminars were held, during which the output of “GHGs emission accounting and reporting guideline as well as reporting template for aviation enterprises” were discussed with the experts. Also the trial use results were presented to the government officials, the local experts and industrial stakeholders. During the period of from January to June, 2013, the guidelines for the accounting of GHGs emissions for power generation and power T&D enterprises in China was completed after several rounds of discussion and reviews based on the feedback and internal discussions among the experts in China electricity council ,SGCC, and Jingneng Corp,. Activity 2.3 Study on enterprise-level greenhouse gas emission report contents and format methodology for China’s cement, flat glasses, non-ferrous metal, chemical, power generation and aviation industry/Research on greenhouse gas emissions accounting, reporting contents and format for enterprises of key industries, and its application Analyze the GHG gas emission report method and good practice from foreign enterprises in cement and flat glass industries. Put forward the GHG gas emission report format for enterprises in cement and flat glass industries in china. 7 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 Organize expert consultation meeting for the GHG gas emission report format and contents. Attend workshops including experts from China and Norway. Develop and revise Reporting Formats & Contents for GHG Emissions from Electrolytic Aluminum Enterprises in China. Develop and revise Reporting Formats & Contents for GHG Emissions from Magnesium Smelting Enterprises in China. Consult with governments and experts in the field of reporting formats & contents for GHG emissions from electrolytic aluminum enterprises in China. Consult with governments and experts in the field of reporting formats & contents for GHG emissions from magnesium smelting enterprises in China. During the second quarters of 2013, project team drafted the reporting format for production of chemicals and revised based on the feedbacks from experts and related enterprises. On 29th August 2013, DCC-NDRC organized a general discussion and co-drafting meeting for enterprise-level GHG emission accounting methodology and reporting guidelines for production of chemicals, iron & steel, primary aluminium, magnesium, cement, flat glass, ceramics, power generation, power T&D, aviation. More than 10 experts from relevant industrial associations were invited. This workshop reviewed and defined the common template of these guidelines. Based on the trial application and the above-mentioned common template, the NCSC team refined the draft of GHG Emission Accounting Methodology and Reporting Guideline for Chemical Enterprises in China; On 15 October 2013, the NDRC published online (http://www.ccchina.ogv.cn) the GHG Emission Accounting Methodology and Reporting Guidelines for these 10 industrial sectors, i.e. production of chemicals, iron & steel, primary aluminium, magnesium, cement, flat glass, ceramics, power generation, power T&D, aviation. Desk study on experience and good practices on iron & steel GHG inventory reporting in other countries. Prepare GHG inventory reporting guideline of iron & steel works (draft report). Prepare GHG inventory reporting guideline of iron & steel works (final report). During the first and second quarters of 2013, the preliminary proposal on the reporting template for Chinese aviation enterprises was developed and modified based on the current aviation statistics system and overall investigation on the aviation companies and airport. Drafting reporting template of the greenhouse gas emissions for Chinese aviation enterprises were completed and ready for publication. The project team drafted the GHGs emission reporting template for Chinese aviation enterprises and received positive feedback from the experts during the workshop organized 8 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 by NDRC participated by NDRC, CACC, Civil Aviation University of China, China Eastern, BCIA, NCSC and Project team and the template was adjusted according to the feedbacks from experts. Collect comments on the accounting guidelines and reporting template of greenhouse gas emissions from aviation enterprises. The comments on the accounting guidelines and reporting template were gathered from the selected aviation enterprises. Sent the draft reporting template of GHGs emissions for power generation and power T&D enterprises in China over to experts in China electricity council, SGCC, and Jingneng Corp, gathered feedbacks from them. Based on the feedback and internal discussion, revised the draft reporting template. Collect comments on the accounting guidelines and reporting template of greenhouse gas emissions from fossil fuel power generation enterprises. Revise the accounting method based on the application result, modifications of the accounting guidelines and reporting template based on relevant comments from pilot enterprises. Five important workshops and meetings were held at UNDP, Guohong hotel, Sinocarbon, etc with the participants from UNDP, NDRC, NEA, MTR Team, China electricity council, SGCC, Jingneng Corporation, Project team in 2013. These events were related to the GHG accounting and reporting guidelines. During the meetings, the useful experiences from international enterprises as well as suggestions were taken into account. Activity 2.4 Application of enterprise-level greenhouse gas emission accounting methodology for China’s non-ferrous metal, chemical and aviation industry/Research on greenhouse gas emissions accounting, reporting contents and format for enterprises of key industries, and its application Application of the accounting methodologies in typical enterprises in cement and flat glass industries Application of the GHG gas emission report format and contents for enterprises in cement and flat glass industries Expert consultation meeting for suggestions Applications of accounting methodologies, reporting formats & contents in a pilot electrolytic aluminium enterprise. Applications of accounting methodologies, reporting formats & contents in a pilot magnesium smelting enterprise. Consultations with enterprise representatives in the field of accounting methodologies for GHG emissions from electrolytic aluminium enterprises in China 9 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 Consultations with enterprise representatives in the field of accounting methodologies for GHG emissions from magnesium smelting enterprises in China During the third quarter, the NCSC invited an ammonia enterprise, a methanol enterprise, an ethylene enterprise, and 9 calcium carbide enterprises, to trial this new GHG Reporting Guideline and to calculate their GHG emissions in 2012 or 2011. Apply iron & steel GHG inventory guideline in field visited works. Collect comment on GHG inventory guideline, GHG inventory reporting guideline. Improve GHG inventory accounting guideline and reporting guideline. Application of proposed accounting method in the passenger transport aviation enterprises, freight transport aviation enterprises and civil airport field. The accounting guidelines and reporting template were tried out in the selected aviation enterprises. Application of proposed accounting method in the typical coal, oil and natural gas based power generation enterprises respectively. The accounting guideline and reporting template were sent to selected power enterprises for testing, including 2 coal-fired and 1 natural gas power enterprises. 4. Project Management and Oversight Implementation status Progress to date has been satisfactory during the reporting period. Many results were achieved ahead of the planned time. 6 capacity building workshops were completed in 2013 which is ahead of two year work plan. The 9 guidelines for 6 sectors were published in 2013 which is also ahead of two year work plan. Issues encountered and Risk management NDRC manages the subcontracts with the domestic teams while UNDP manages the subcontract with NEA. NEA’s work plan is designed to give inputs to NDRC’s work plan activities, thus, thus NEA’s progress of the project is very much dependent of that of the Chinese side. The communication has been enhanced and more intensive communication will be need for the next step work. 10 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 Monitoring and Evaluation The monitoring and evaluation management during the reporting period is adequate. Several rounds of meeting among NDRC, UNDP, and the Embassy were held and one assembly working level meeting with all key partners involved was held in mid November. Midterm evaluation is completed with very positive conclusion of the project results achieved. The conclusions are as followed: The GHG Project has been highly effective in delivering outputs for GHG accounting and reporting formats that will enhance the quality of enterprise GHG reports and GHG inventories to the ETS system. The effectiveness of the past work should allow the Project to cover 14 industrial sectors instead of the original target of 6 sectors; The benefits of NEA participation on these Projects are significant including their inputs and validation of NDRC’s approach to the design of enterprise-GHG guidelines, GHG inventories and ETS designs and operations. Human Resource Management Communication and advocacy Communication has been enhanced for more effective implementation and cooperation for relevant project implementation partners. 5. Financial Management The GHG project is being delivered according to the planned budget with details as follows (amounts are all in US$): Source of Fund Expenditure Vs. Approved project budget by source of funding UNDP Government Cost Sharing Third Party Costsharing (Norwegian funding) Other (please specify) Total Funds received 2013 Budget (2013) Expenditure (2013) - - - - - - 2,126,485.44 1,726,068 1,700,927 2,126,485.44 1,726,068 1,700,927 Table 1: Expenditure Vs. Approved project budget by source of funding 11 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 Table 2: 2013 Financial Report It should be noted that 2 payments have been made by the Embassy during the year 2013 and the second payment was provided to cover the full project cost for newly proposed activities. The delivery rate is 98.54% against the planned budget as of December 31, 2013. The financial report includes the expenditures (NDRC and NEA) throughout the year of 2013. Part of the reason for increasing delivery is due to the overcharge of UNDP GMS cost in 2013, which will be recalculated by the end of the project. USD3, 448,582.00 (NOK20,622,236.00) was received in project account and USD1,465,008.39 spent until December 31, 2012. Therefore, USD1,983,574 was carried over to 2013. USD2,126,485.44 (NOK12,699,225.00) was received in 2013 and USD1,700,927.00 spent until Dec 31, 2013. Therefore, USD2,409,132.44 will be the total budget for 2014 for GHG project. Exchange gain and loss There are two categories of exchange gain and loss: one is due to the funding transfer from the donor to UNDP China, which needs to change NOK to USD. The other is due to the fluctuation of the exchange rate between RMB and USD. UNDP will further calculate the potential loss for ETS project and seek solution from all partners on how to deal with the situation with three possible solutions for consideration: 1. Increase the budgets 2. Adjust the budgets 3. Reduce or adjust the activities 12 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 6. Management recommendations From the mid-term evaluation new disbursement modality should be explored to enhance the final cooperation between NEA and NDRC for better implementation. Recommendation 4: NEA and NDRC will need to setup a new disbursement modality where NEA are managing previously-led NDRC managed activities. This may include NEA “outsourcing” direction of these specific activities to NDRC, and providing its own oversight to these activities prior to approving the reimbursement of these activities. Proposed Follow Ups: UDNP will propose the disbursement modality procedure for Norwegian Embassy, NEA and NDRC to endorse for the implementation. 6.1 Regular communication among the project partners is needed for more effective implementation of the project. Communication is crucial to effective implementation of the projects. Communication should be increased and set for on a regular basis among all the partners while UNDP will take a lead in this. More meetings between NEA and NDRC including the subcontractors will be organized to enhance the communication and cooperation. The communication should be further strengthened as the project stage is moving towards more to the application of the project results by sharing more practical experiences from Norway/Europe to China. 7. Gender The GHG project is not meant to be a gender-oriented project; however, women do take a considerable percentage among the 3 Chinese and NEA experts and participants of the project-organized workshops, along the fact that the senior management and the PMO staff are all women on the Chinese side. 8. Anti-Corruption The anti-corruption measures have been put in place with annual auditing conducted on both the Chinese and NEA sides respectively. 9. Conclusion The project results were achieved with the activities of capacity workshops and guideline development completed successfully ahead of time. During 2013 the project scope has been 13 Annual Project Progress Report United Nations Development Programme 联合国开发计划署 broadened to include development of additional eight sectors. This has been possible because the spending of this project was lower than the original budget, making it possible to add other activities to the project. Guidelines for 10 sectors were published on website which is well ahead of plan Provincial capacity was enhanced for guidelines and reporting through 4 workshops with 500 government officials from central, northwest, north and east of China. With successful seminars and testing, the guidelines and reporting under formulation were further revised for better technical and managerial application for both public and private sector. Effective mechanism for public and private sector from both China and Norway/Europe to work together for guidelines and templates of GHG accounting and reporting. Systematic and participatory trial application approach developed through formulation, testing, feedback and revision for all relevant stakeholders to work together to ensure the guidelines and templates are enforceable cost-effective and practical. An effective training mechanism for GHG inventory to ensure sufficient capacity for effective implementation. The training could also provide practical feedback on the GHG inventory work, which also ensured their feasibility and cost-effectiveness. 14