China’s Ministry of Finance has announced a plan to launch a mandatory national emissions trading scheme sometime between 2017 and 2020. The country has chosen seven regions where carbon market pilots will begin in the meantime. Eleven regions across China have been conducting pollution trading pilots since 2007, partly modelled after the EU emissions trading scheme. While pilots to date have focussed on carbon dioxide (CO2), the national scheme is expected to include sulphur dioxide (SO2) and nitrous oxide (NOx) as well. One billion metric tonnes of CO2 will be covered under the pilot programs, smaller only than the EU emissions trading scheme.
See “China aims to launch pollution permit market within 3 years” from Reuters at: http://in.reuters.com/article/2014/03/24/china-pollution-idINL4N0ML1OU20140324. By 2020, China has pledged to cut its greenhouse gas emissions per unit of GDP by 40 to 45 percent from 2005 levels.