China is setting increasingly ambitious greenhouse gas targets and backing them up with a wide array of policies and programmes. How successful China will be in slowing and eventually reversing the growth in its greenhouse gas emissions will depend significantly on how well it does with policy implementation at the local and regional levels. This article examines how climate governance works in China's multi‐level governance structure. It explores why the Chinese leadership is taking climate change seriously, the nature of the policies and programmes being introduced, and the steps being taken to promote local environmental innovation and improve policy compliance. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment