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During the 11th Five-Year Plan, China reduced its energy intensity by 19.06% compared to a 2005 baseline, primarily through the adoption of cleaner technologies and economic structural changes. While administrative and incentive instruments significantly reduced CO2 emissions, total emissions grew by 33.6%, making China the world's largest greenhouse gas emitter. The report highlights that while large enterprises and local governments implemented energy-saving measures, small- and medium-sized enterprises lagged behind, and regional competition often prioritized GDP growth over carbon reduction. Looking toward the 12th FYP, the document warns that rising marginal costs and rapid urbanization will make achieving new energy and carbon intensity targets more challenging.

The report evaluates the EU ETS's impact on corporate investment behavior, finding that while it successfully reduced investment in carbon-intensive assets, its ability to trigger a shift toward low-carbon strategies is hindered by insufficient stringency and the use of free allowances. It highlights that the current cap reduction trajectory is insufficient to meet the EU's 80-95% emission reduction goal by 2050 and argues that the Clean Development Mechanism (CDM) creates uncertainty and reduces effective emission targets. The authors recommend tightening the ETS cap, phasing out offsets, reforming IFRS accounting practices to reflect the true value of allowances, and combining carbon pricing with technology-specific support schemes to create a more enabling environment for low-carbon projects.