With ever growing urgency, climate change mitigation is fast becoming a priority for China. A successful policy of implementing and expanding sustainable development and the use of renewable energy is therefore vital. As well as long-term and near-term targets for installed capacity of renewable energy, in its 12th five-year plan, China has created strict and ambitious carbon intensity targets for each province. This study proposes an inter-provincial clean development mechanism to assist in meeting these targets. This mechanism will create potential co-benefits of assisting in sustainable development in lesser developed provinces, increasing local air quality and supporting the growth of China's renewable energy sector. This paper also highlights the potential that this inter-provincial clean development mechanism has in accelerating the growth of the domestic solar photovoltaics (PV) sector, for which the market in China is still in its infancy. (C) 2013. Elsevier Ltd. All rights reserved.