China has the capacity to lead in carbon trading.

The author reflects on the progress of the emissions trading scheme in China. He cites the implementation of seven trading trials of the scheme in the country that covers around one-third of energy use, however, he also mentions the challenges and issues associated with the program due to several questions pertaining to its energy use and carbon emission calculation. However, the author asserts that the country will be able develop a reliable system for the program to ensure its success.