The project aimed on building the groundwork for a future cooperation between the Department of Environmental and Resource Economics at ZEW and the Center for Energy Economics and Strategy Studies at Fudan University Shanghai. Scholars from both institutions researched together on the future energy supply in China and Europe, challenged by the need to limit greenhouse gas emissions. A focus of research was the scope for sectoral approaches to achieve emission reductions in the energy sector. Even if emission reduction obligations on the sectoral level are “second best” from an economic viewpoint, they might be promising when emerging economies are to be integrated into an international consensus. Reflecting the results of the UNFCC congress in Copenhagen and the discussion about sectoral climate policies, the partners analysed the scope for and implications of different options for international cooperation in the energy sector. The project was completed successfully while the partners can proceed to a quantitative assessment of sectoral agreements through an ongoing research cooperation between Fudan University and ZEW.