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Annual Report on China’s Low-Carbon Economic Development （2013） (Hereafter referred as Report) is the 3rd annual research report on low-carbon economy edited by the Global Low-carbon Economy Institute which is a joint venture between the University of International Business and Economics and Nagoya University.

Since the UN Climate Change Negotiation Conference in Copenhagen in 2009, International climate change negotiations have encountered setbacks mainly due to the impact of global financial crisis and the subsequent domestic discords in western countries. New international mechanism on climate change mitigation has yet to be reached. Meanwhile, China, as a fast growing emerging economy, faces mounting pressures on GHGs mitigation. In the beginning of 2013, the widespread and persistent heavy smog over a majority of China’s heavily populated regions and cities warned Chinese that green low-carbon development is not only part of China’s international obligation but an inevitable path for Chinese own welfare’s sake. Chinese Communist Party has formally included Ecological Civilization as one of the core missions in Chinese Socialism Agenda in the18th Party Congress.

The report contains 4 parts: the first part is a general report focusing on the explanation of the new green-low carbon deployment mode and in policy implication in the 12th Five-year plan and the Agenda of the 18th CCPC; the second part focuses on the PM 2.5 issue and introduce policy governance; the third part introduce some policy suggestions to the practice of the energy-saving and carbon emission reduction in the 12th Five-Year Plan; the fourth part introduce international expedience in dealing with climate change and energy policy by a special focus on the case of Japan after the Japan earthquake; the last part lists statistics data of carbon emissions of China and the world.　

Environmental pollution has increasingly impacted China’s economic and social development negatively in China’s industrialization and urbanization. The wide-spread and persistent heavy smog in most China’s heavy populated regions since the beginning of 2013 helped to forge consensus among stakeholders that economic growth could not be at the cost of environment and curbing environmental pollution should be a high priority in economic development.　　

In the second part of the report, we present some articles focus on the top issue of China’s air pollution featured with PM 2.5 has reached a very high level, covers large areas and is caused by complex factors. The complex causes for the air pollution and the problems with current environmental governance are analysed. A case study is provided on the composition and causes of air pollutants in Beijing and its neighbouring regions. Comparative analysis on the paths and experiences of environmental governance in the United States, Europe and Japan are conducted in the report. The authors propose the targets of PM 2.5 control, governance road-map and comprehensive instruments. 　

The third part of the report analyses the characteristics of greenhouse gas emissions in different regions in China. Whereby, the 31 provinces and districts are grouped into 5 categories with different GHG emission reduction targets. Market mechanism is another essential instrument for GHG emission reductions. Chinese carbon market building is still at her infancy. Pilot program, MRV system, emission quota allowance and carbon pricing are core issues to be addressed in building an efficient carbon market. A case study on the carbon market building program is provided. Imbedded carbon emission in international trade is a core issue of GHG emission transfer. Limiting the carbon intensive export and inward FDI should be adopted as an instrument to reduce China’s carbon emissions.

International cooperation facilitates China’s low-carbon development. Sino-EU cooperation in capacity building and low-carbon technology research and development set successful models between advanced and emerging economies though constrained by the latter’s fear of competition.

In the report, we continue introduce the international experience and lessons in low-carbon economic development by case studies of Japan.