We estimate the domestic environmental and health benefits of exploiting China’s energyrelated CDM potential. Exploiting the CDM potential may save between 3,000 and 40,000 lives nnually. Additional gains are estimated to reach upwards from 1 billion RMB annually. The key to these gains is the fact that actions and measures to reduce CO2 emissions also reduce emissions of TSP and SO2. In our estimate, exploiting the CDM-potential will cut SO2-emissions by between one-half and three million tons annually. To arrive at these conclusions we synthesize a significant body of recent research on co-benefits of climate abatement in China.