Financial assistance and the transfer of technology have been among the most divisive issues at climate change talks between developed and developing countries. China has made continuous efforts on both since the Kyoto Protocol was first established.
During the Durban Talks, China unveiled its plan to establish a carbon emission trading scheme. The blueprint of the project was published in November. Seven cities and provinces are listed as pilot trading zones, including Beijing, Shanghai and Tianjin.
Professor Yang Zhi, director of Climate Change & Low Carbon Research Institute , Renmin University, said: "A carbon trading market will provide funding to cut emissions and improve environmental protection project".
The pilot program will take shape by 2013. Yang believes that carbon financing can be a sustainable solution for the development of the country’s green industry.
Professor Yang said: "Companies with green projects will receive financial back-up through carbon trading. This form of development is more sustainable than a one-off subsidy. The trial program has shown China’s initiative and determination on reducing emissions."
Reporter: “Apart from carbon financing, China is also seeking international cooperation on green technologies.”
In the past decade, the country has made remarkable progress on the improvement of energy efficiency and the development of renewable energies.
Chen Jiliang, program manager of Heinrich Boll Stiftung said: "China takes emissions cuts as a long-term goal with priorities. So we are quite confident on the future development of the domestic market."
Meanwhile, Chen believes that the main bodies of technology transfer are still enterprises, not governments. The size of the potential market plays a key role on whether a technology cooperation deal can be agreed. Chen said: "Governments might provide a platform for enterprises to communicate, or cover some of the trading costs. But the successful implementation and localization of a green technology project still depends on whether it has a local market and the buying power of the market."
China has set a target of reducing carbon intensity by 17 percent during the 12th five year plan period from 2011 to 15. And China hopes it is not alone.