China May Launch First 'Cap and Trade' System

The northeast port city of Tianjin, China, may launch a cap-and-trade system by June, making it the first such case in the world's most pollution-heavy nation.

"Pursuing energy efficiency has truly risen to the top of the agenda for local governments," said Arreon Carbon U.K. Ltd. CEO John Shi. "[The program is] a way to mobilize capital and mobilize technology."

The announcement represents one more step by the growing nation toward improved sustainability. President Hu Jintao promised in September to work toward reducing emission levels by a significant margin, setting the stage for anagreement with the U.S. to cooperate on tracking China's emissions. 

The latest development comes three months after China and other nations met in Copenhagen to discuss plans for reducing emissions and combating global warming, with President Obama setting into motion a renewed effort to develop a comprehensive international emissions reduction agreement in 2010.