China has announced it plans to implement an emissions trading scheme by 2015, starting with a small pilot scheme next year.
In the meantime it will tax the most energy intensive industries and give preferential tax treatment to those companies developing green technologies.
Recently, Premier Wen Jiabao told a State Council meeting China should intensify its efforts to ease climate change and promote sustainable development. State media quoted him saying greater efforts should be made to promote energy saving and emissions reductions over the next five years. It comes as China says it will trial an emissions trading scheme from next year, with a national program up and running by 2015.
If that sounds familiar, it is because it's a similar approach to Australia's carbon price and proposed emissions trading. China has stated its commitment to slowing down the growth of its greenhouse gas emissions by around 40 percent by 2020, but admits it will not be able to cut them entirely.
According to Professor Yunchang Jeffrey Bor, who heads the economics department at the Chinese Cultural University in Taiwan, "[China] has already passed the law. By 2016, I think they will try to promote carbon trading more urgently than the carbon tax".
South Korea is also expected to start an emissions trading scheme in 2015; the same year as Australia's and China's. Its said to be aiming for a similar reduction as Australia's in per capita terms and to get a head start in the green economy race.