Challenges loom for China's ambitious carbon trading market

Beijing

CHINA'S newly announced carbon market is a good step to controlling polluting emissions, but it will take quite a long time for a national market to become effective.

Analysts said the world's second-largest economy will face many challenges along the way including the need for transparent reporting, how credits are allocated and the difficulty of predicting China's growth. What's more, China has very little history in commodities trading.

Earlier this month, China announced long-awaited plans to set up a trial carbon market with the aim of rolling it out to all industries and provinces in the years to come.

After much delay, the National Development and Reform Commission (NDRC), the country's planning agency, said the i…