Global warming is not only an environmental issue - it is complicated by political and economic elements. A cap-and-trade system that combines policy and market forces can be adopted as an innovative approach to cost effectively address the global warming challenge.

In the EU, Australia, New Zealand, California of the United States, and more recently South Korea, carbon is rising as a new "commodity". China is about to take its first step to reduce emissions of greenhouse gases by embracing the market.

According to its 12th Five-Year Plan (2011-15), China is determined to cut its nationwide carbon intensity by 17 percent by 2015.