Earlier this month, Xinhua, the Chinese government’s official press agency, announced the launch of the world’s largest carbon emissions trading system. China’s new carbon market is expected to manage over 3 billion tons of carbon, which would make it at least 50 percent larger than the European Union’s Emissions Trading System (EU ETS).

The first phase of China’s carbon trading system will cover the country’s power generation sector, which by most accounts currently burns about half of the world’s supply of coal.

The news further cements China’s newfound role as de facto global climate leader, and it could both put a dent in its emissions and inspire other countries to make similar moves,” said MIT Technology Reviewshortly after the news was made public.

With the United States’ withdrawal from the Paris climate agreement, China’s government is eager to step in and exert itself as the world’s climate action leader. The reality, however, is a mixed bag when it comes to environmental stewardship. China’s solar power sector is booming as the country builds more solar installations at home while exporting more components abroad. But the country’s coal producers are also increasing the amount of that fossil fuel exported to developing countries.

Read the full article by Leon Kaye about China's carbon market from TriplePundit