Under the new agreement, California and Shenzhen have agreed to work together to share policy design and early experiences from their climate trading programs, in order to build strong, stable and growing markets for clean energy technology and greenhouse gas emission reductions.

The collaboration will focus on building effective systems for data gathering, emissions verification, market monitoring, compliance and enforcement. Additionally, California and Shenzhen agree to monitor and share the best available climate and pollution-related science and research. The goal is to use the data to identify and evaluate additional policies, including performance standards, and to support low-carbon economic growth and reduce toxic air pollution.

Chairman Nichols was invited by the Mayor of Shenzhen to participate in the inauguration of China’s first Emissions Trading System (ETS). The event, a milestone in China’s efforts to combat climate change, included a national conference attended by China’s national leaders on climate change, including Vice Chairman of the National Development and Reform Commission Minister Xie Zhenhua.

Leaders of the seven provinces and cities hosting China’s first ETS pilots also attended this conference, together representing more than 200 million Chinese residents.